Luxury Goods Are Cheap And Expensive.

Recently, the low cost of luxury goods has always been at the bottom of the market, which has caused a great contrast with its expensive sales price, which has also seriously challenged consumers.

According to people familiar with the matter, a LV bag with a special price of about 20 thousand yuan will be produced at a cost of about 200 yuan in large quantities and about 400 yuan in a smaller batch.

On the other hand, the old luxury brand Gucci is also in trouble.

Recently, a TV station has just been exposed to the cost of a genuine handbag priced at 1000 euros, which costs only 24 euros. Recently, the news of a Chinese sweatshop completely pushed it to the top of the storm.

In fact, the luxury goods encountered in the question of value are not only Cucci and LV. As early as last May, there were reports that the Armani suits or jackets of tens of thousands of yuan were not from the fashion capital of Italy, but from a Shandong enterprise. The cost was only a few hundred yuan.

The OEM factory also claims that it provides fabrics for BOSS, Zegna and other international first-rate luxury goods.

All along, due to asymmetric information, the manufacturing process of luxury goods is very mysterious.

There is a saying that luxury brands spend a lot of money on promotion and promotion, and their manufacturing costs only account for a small proportion of the price, especially clothing, shoes or bags.

It is understood that the calculation of the cost of luxury goods includes raw materials, processing costs, brand value, public relations and marketing costs, channel costs, tariffs and government taxes.

In addition, some people in the industry say that some celebrities of luxury goods have spent a lot of money, some of which account for about 50%-60% of the price.

So, it seems that the high selling price of luxury goods seems reasonable too.

There are also divergent opinions about whether this mode of operation of luxury goods is reasonable.

In view of the phenomenon of "low cost", the luxury goods giant also admitted that although the raw materials and processing costs are not high, the marketing cost of luxury brands is very high.

In fact, the brand value of luxury goods costs has become an important one.

In addition, taxes and taxes are also part of the price.

For example, the price of local luxury brands in France is cheaper than that in China, and the price difference is about 20%, which is mainly due to taxes and fees.

According to the China Economic Net fashion channel, in the past year, under the influence of multiple factors such as the economic recession in Europe and America and the lack of growth in emerging markets, luxury brands have been plunged into the embarrassment of declining performance. More and more veteran luxury brands begin to say goodbye to the "golden era".

Recently,

The third quarter earnings report released by the group showed that it was dragged down by weak demand of flagship brand Prada leather products in Europe and Asia Pacific region. Gross revenue in the first three quarters dropped 5.6% and profits fell 44%.

In the three quarterly report just released, Gucci also showed that sales fell 1.9% year-on-year.

However, the luxury industry did not depreciate because of the slowdown in sales, but continued to rise. This seems to have become an industry habit, and also a distinguishing feature of luxury goods from ordinary goods.

It refers to high-end consumer goods with unique, scarce and rare features.

China economic network fashion channel believes that both high-end and expensive, this is the customary thinking of consumers.

Luxury goods must be the products that ordinary people can't afford to spend everyday. It is precisely because of this that consumers who buy luxury goods will have the psychological value of "buying value". Even if they are expensive, they will not feel wronged.

Imagine if Cucci handbags, LV belts and other large luxury goods are priced at the same price as ordinary consumer goods, I am afraid that sellers will not even dare to buy them.

Because in pressing

At the same time, luxuries have lost their intrinsic value and are hard to be called luxury goods anymore.

People in the industry say that the consumption crowd of luxury goods is there, and the price tag is really not important.

Even in the off-season, it is seldom discounted.

If the price is reduced or the price is reduced, the customer will think that the quality of the product is defective or the style is out of date.

The style approved several years ago may be launched in a specific period, and there will be a small discount for such products.

But the discount is generally the lowest level of the luxury consumption crowd. The mainstream people still like to buy new models, not care about the price.

In the past, consumers bought luxury goods mainly to show their social status and special taste, and they are the symbols of status.

But with the development of the market and the degree of information understanding and mastery, the purchasing psychology of consumers is gradually maturing.

When consumers change the concept of "the most expensive is the best", the luxury market will gradually return to the rational nature within the acceptable range. As a special commodity, only they have special commemorative meaning and quality, and the extra high added value will be recognized by consumers.