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The more prices go up, the more people buy. Who is consuming luxury goods? Reselling luxury goods, "poor people" win
release date:2023-04-29 13:45
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In the past three years, Chanel has experienced the most aggressive price increases among leading luxury brands. According to data from the Financial Times, the price of Chanel CF (Classic Flap) series handbags is 74% higher than in November 2019. But almost every price increase will bring higher economic benefits. After the latest round of price increases, the pricing of Chanel Medium Classic Flap and 2.55 Reissue has soared directly to the 7.5W level. In 2019, the price of these two bags was still around 30,000 yuan. In less than four years, their value has doubled. During the epidemic, the revenue of luxury goods groups increased instead of falling, which also promoted changes in the rankings of the richest man and the top ten. Hurun Research Institute recently released the "2023 Hurun Global Rich List". LVMH Group CEO Bernard Arnault reached the top for the first time, with a wealth of approximately 1.35 trillion yuan, an increase of 32% compared to 2022. Hermès Group CEO Bertrand Puech and his family ranked third with a wealth of 900 billion yuan, an increase of 31% from the previous year. “The epidemic has made many luxury brands pay more attention to marketing and income from high-net-worth individuals.” An industry insider told Value Planet, “There are also long queues. Internet celebrity brands rely on discount promotions, while top luxury brands such as LV, Chanel, Hermes, etc. never go on sale.” After the epidemic, luxury brands have focused more on a small number of high-net-worth individuals. This is because "this group of people is less affected by changes in the economic environment. Although their number is small, their repurchase rate is high. The high degree of overlap in their interpersonal circles makes it easier for luxury brands to spread word of mouth." The most obvious change after the epidemic is that major luxury brands have begun planning to open VIP rooms in China specifically for wealthy people. Both Louis Vuitton and Dior have opened special VIP rooms within Beijing SKP, while Chanel stated in its 2021 financial report that it will open private boutiques for top Asian customers. Gucci has similar plans, including in Shanghai. Private salons have been opened in several cities, with high hopes of reviving performance. The higher the price of a luxury brand, the more closely it is bound to wealthy people, and the more persuasive the concept of luxury life it can create becomes. CCTV Finance's "First Time" once launched a program "Focus on the Price Increase of Luxury Products". A founder of a second-hand luxury store in Beijing said that the store sells about 3,000 bags every month. Before, there would be a sales peak for second-hand luxury goods. There are even platforms that publish financial package survey reports based on consumer demand. The "Ten "Financial Bags" in 2021" report released by Kaola Haigou shows that the Celine Romy armpit bag, which has the highest price increase in 2021, has increased by as much as 95% from its initial launch price, significantly outperforming funds and the stock market. . The second-ranked Balenciaga hourglass handbag also rose from 10,900 yuan to 14,900 yuan, an increase of 36.7%. While pursuing returns, there are also risks. At the beginning, the psychological fluctuations were quite big, but now it is much better. Compared with buying a fund, the income from the flipping package is completely controllable. It has risen so much in the past two years, and you can make money if you buy it. . "