Chanel Plans To Raise Prices By 38%.
According to the news of Paris, in the increasingly stable digital era, considering the impact of currency fluctuations for future brand positioning, the French fashion company Chanel will adjust its external standard price for its three handbag brands since April 8th. The exchange rate has led to a substantial increase in its price in Europe, while Asian prices have dropped sharply. The Chanel package will rise in price from April 8th, with a maximum increase of 38%.
Among them, the Boy chanel rose 20%, the classical rose 20%, the GST rose 38%, the classic wallet (including double C buttons, Kang Peng series and Camellia Series) increased by 20%, and other watches, clothes and shoes would rise, but the price range was not so big.
Bruno Pavlovsky, President of Chanel fashion division, said: "in this way, the global price fluctuation of the company will not exceed or lower than the benchmark of 10% euros. He pointed out that the price of other products will also begin to adjust in the 2015-16 quarter." He described the new price policy as "the best way to maintain good relations with consumers", which will undoubtedly be a heavy blow to brand competitors. The reason for this adjustment is to ensure that consumers are attracted by brands and products rather than guided by price differences. He said: "this is for the next 10-15 years of brand planning. We care more about the future than in the past.
The rapid devaluation of the euro has become very prominent in recent months. Some Chanel products are two times as expensive in Europe as in Asia. According to Pavlovsky, this has led to "huge growth in the parallel market, especially in China and Southeast Asia," which is not yet a strong market quota for Chanel in boutiques. The parallel market of luxury goods is always a headache for the authenticity of products. "We hope that we are not in the list," he said in an interview. "There is no good way to resist forgery, but only by price. "
Chanel plans to gradually launch a price adjustment plan in all fashion categories, with the goal of being fully implemented at the end of this year except Brazil (Brazil's higher export tariffs). The spring and summer handover is the annual price increase season of luxury goods, and the annual price increase is also known as habitual price increase. There is a professional media evaluation of foreign handbags for CHANEL products. This year, the price will rise, but the magnitude and time of price increase. There are also news reports including LV, Hermes, Burberry and other luxury brands will also rise in price, an average of about 10%.
Chanel creative director Karl Lagerfeld In person, the three big goddesses of Kristen Stewart, Alice Dellal and Vanessa Paradis respectively endorsed Chanel "11.12", "Boy" and "Girl" handbags.
Though in the past two years Luxury goods The growth rate has slowed down, but it has not affected its habitual price rise. Beginning in mid April 2014, Chanel (Chanel) increased the price of Classic Flap series medium and large price by 450 euros; the 2.55 series rose by 450 euros per model, and the Le Boy series medium price rose 300 euros. Relevant data show that in 2010 and 2011, the price adjustment of Chanel was 20%~40% and 20%~30% respectively. In 2012, the price adjustment rate was 10%~15%, roughly estimated that the average price increase of Chanel over 5 years was over 15%. Some people sigh with emotion: in 1955, when Chanel released the first 2.55 package, it sold for 220 dollars, and now it costs at least 4830 dollars to buy this classic bag. In less than 60 years, the price of Chanel 2.55 has increased 20 times.
Although luxury goods such as Chanel rise regularly every year, but because of the frequent exchange rate changes recently, luxury goods have begun to make up the price difference caused by the exchange rate through rising prices. The euro exchange rate fell to its lowest level in 13 years, and the collective price rise of luxury goods was also expected by the industry.
Pavlovsky pointed out that prices in the United States, Britain, Canada and Japan have been basically the same and there will be no special adjustment. The price adjustment will enable Chanel's store managers to focus more on the development of local customers and will not be attracted to "sales imbalance" by too many people simply because of price differences. We want to focus on those who are attracted by our brand and creativity and know the customers of our works, not those who are only attracted by low prices. "He explained.
Pavlovsky knows that the new price policy will help to relocate Chanel and gradually penetrate the brand into e-commerce. "One day we will probably sell it online, when we are ready. He said, "our products need to be touched, tried and reflected, so we can't go online at this stage." The general manager is reluctant to reveal when Chanel will enter the electricity supplier, but suggests that the company will need at least 18 months to 2 years to "develop something globalized and powerful enough".
A rush of products will be launched before the price rises in April 8th. European market Pavlovsky is not optimistic. He pointed out that this traditional style represents almost 1/3 of the European handbag business.
Chanel designer Karl Lagerfeld produces six new products a year, and most of them are very creative. In addition, "our product line is very wide, so adjusting the price policy is a very good opportunity," Pavlovsky said. "In Europe, our local customers are buying a lot of handbags ranging from 2000 to 4000 euros, and we will continue to provide enough goods at this price. We are in a global market where consumers are moving very fast, "he said. "We hope that the brand positioning can also be consistent with the market environment. I think this is part of the reason why Chanel has such transparency." Chanel has 190 boutiques around the world and sells retail fashion series in independent stores in the US.
According to the bain consultancy data report, although the sales in the mainland market dropped, Chinese consumers went abroad to spend a lot of money, including mainland sales, purchasing and outbound purchases. The total consumption of Chinese luxury goods in 2014 was about 380 billion yuan, up 9% over the same period last year. The scale of luxury shopping market reached 550-750 billion yuan.
When asked whether the price policy will affect the business momentum of the company, he replied, "I am very optimistic about this point," he cited feedback from strong market and brand store managers such as the United States and Japan. "If we can do that, it's because our brand is very strong," he continued. "2014 is the best year for Chanel. We think we are strong enough to complete this adjustment."
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