"Price Coordination" Is Achieved At One Stroke.

Take the LeBoy handbag as an example, its original price in Europe is 3100 euros (about 20 thousand and 500 yuan), after the price rise is 3720 euros (about 24 thousand and 600 yuan); its original price in the mainland is 32 thousand and 700 yuan, after the price reduction is 26 thousand yuan.

In 2014, Chinese luxury goods consumption amounted to US $106 billion (about about 640000000000 yuan), accounting for 46% of the total global luxury market volume of US $232 billion, according to the China luxury goods report. But only 25 billion dollars, about 24% of the share of consumption occurs in China. Therefore, Chanel has the courage to cut prices in China. Anyway, they used to buy less domestically.

When the difference between Europe and the mainland is only 1400 yuan, there will be a lot of money. China Should consumers go to Europe for shopping, or choose overseas purchasing agents to take the risk of counterfeit goods? The answer should be No. Great, Chanel just wants Chinese consumers to buy them in their own countries. Because the same purchase of a LeBoy handbag, originally bought in Europe for 20 thousand and 500 yuan, is now rising in Europe. Price reduction After that, instead of going to Europe to buy, instead of buying at home, 26 thousand yuan, Chanel earned 5500 yuan from it. So, instead of reducing the price of Chanel in the domestic market, it is better to buy Chanel at a low price anywhere.

Narrowing the price gap and upgrading profit At the same time, "restraining the influence of overseas purchasing market on brand image" was written into Chanel's statement on price coordination.

According to Bain consultancy data, the scale of China's overseas purchasing luxury goods is about 55 billion -750 billion yuan. The prosperity of the purchasing industry has earned the profit margin that originally belonged to the brand dealer. Taking Chanel as an example, the purchase price is about 3000 yuan. The bigger problem is that a large number of fake goods are coming into the purchasing market because of the considerable profits, which seriously affects the brand image.

After Chanel announced the price reduction in China and the price increase in Europe, the purchasing agency industry should fall down. Search for Chanel on Taobao, most businesses no longer represent the three handbags that have been priced. A purchasing agent said it was a blow to their jobs.

Hongkong's troubled mainland tourists and water users are also expected to be solved by a price adjustment document of the brand. A girl with LeBoy's back in Nanjing's chic square said with annoyance, "my little bag was bought in Hongkong in February this year, when it was converted to RMB 30 thousand yuan. As far as I can see today, the domestic cost is only 26 thousand yuan, which is 4000 yuan cheaper than Hongkong. " The customers around him shook their heads and said, "don't run out to buy Bags anymore."

Clearly, tourism will also change. According to statistics, in 2014, the number of outbound travellers in China reached 117 million, and the per capita consumption of overseas shopping was US $632, the highest in the world, mainly in luxury consumption. Bain consulting predicts that if the domestic price of luxury goods has been reduced, the consumption of luxury goods abroad will decrease in the future. Experiential consumption, such as holiday village, SPA, private jet and yacht, will increase.

Chanel has a sense of crisis and hopes to change the sales model. Their goal is to enhance the shopping experience of customers in boutiques. Lu Xi, a well-known luxury commentator, said: "retail companies have their own CRM (Customer Relationship Management). If your CHANEL is purchased on behalf of you, you will always be away from the system. Brands do not know how to establish emotional ties with you, and how to improve your services. Successful retailing pays close attention to the close relationship between "long", "near" and "one to one". It is difficult to grasp the essence of tourism shopping. So, the best thing is that you shop at home.

ArmandoBranchini, Secretary General of Italy Luxury Association, suggested that the Chinese government cut tariffs to narrow the price gap between luxury goods at home and abroad. He believes that this will encourage European enterprises to invest in China, directly invest in production and open shop, provide jobs, publicize more, and contribute more to China's economy.

This is even a profound thing for China's economy.