Last year July, lu Yiwei ascends Xuan Ni poem (LVMH) is presiding financial Guan Qiong – Jacques Gaienyi (Jean-Jacques Guiony) is in needle of the Ceng Yi when reporting this group half an year to spend outstanding achievement: Suffer this group throughout history to had seen, most substantially the influence with fluctuant exchange rate, group business profit grows 7% only. If press constant exchange rate computation, business profit grew 19% actually.
This year January, should be asked about to be opposite when the expectation 2009, gai Enyi still supports cautious attitude. He expresses: “How can situation of manage clear exchange rate develop in us before, judge the situation 2009 very hard will how. Exchange rate wave motion is handling the level that has no afore, do any forecasting now the risk is very big. Do any forecasting now the risk is very big..
Most luxury company discovers, although their cost mostly with euro valuation, but they have at most the income of 80% is with other money valuation. Before, they ever were used suffer exchange rate wave motion to affect to rushing to make he is avoided. But fall in current economic situation, ten thousand changes in the twinkling of an eye of a got-up affair, favour of advisory company shellfish (the luxury expert that Bain &Co) is stationed in Milan overcomes Laodiya Dapijiao (Claudia D‘Arpizio) expresses accordingly: “Although the money is a kind of significant step to rushing, but we or overweight of side of conference proposal client fix a price. But we or overweight of side of conference proposal client fix a price..
What with presiding finance affairs the official initiates is different to burst plan, the price is decision-making undertake in brand level.
Although all the time since, each brand is in differ in the light of different market set the price, but the amplification that the exchange rate wave motion of the near future makes the akin product price difference in different market is unexpected however. This already initiated some kind of fashionable action that cover interest, formed new challenge to management.
In recent years, the Englishman uses pound to go strong to fly go to new York to finish Christmas sale to already became poor and common. But last year year end, drop in pound add euro even more 20% , add dollar drops even more 25% later, the Englishman is forced to wait for in the home, and the shopper of euro area and United States swarms into bargain of London scare buying in succession, of the shop hit considerably folding an activity is pair of this add fuel to the fire more.
Last year in December, european star (Eurostar) newspaper says, the passenger number that heads for London by European mainland rose 15% , among them a lot of people are taking an aim only apparently: Shop. Ba Baoli (the sale acute of the 3rd quarter increased Burberry) England market 20% , it is attributed to partial growth the passenger flow that comes from China and Europe.
To answer the arrival of large quantities of consumer, last year year end, luyiweideng (LV) , enlighten abstruse (the luxury company such as Dior) reduced the price of Japanese market 7% to 8% ; Sweet Nai (Chanel) , Ke Luoai (Chlo) and Fan Saizhe (Versace) reduced the price of American market similar scope. But Si Tan company of Bern of mulberry Buddha · (Er of all alone of Lu card · blocks analyst of Sanford Bernstein) luxury (an investigation discovery that Luca Solca) launchs, although be after afore-mentioned tone price, one basket Lu Yiwei is ascended and Gu Ji (Gucci) vanity is mixed in China of Japanese market all valence still is compared in European market tall 30% to 50% , make an appointment with before New Year tall 15% . The price of akin vanity is compared in American market in European market tall 20% , a year ago tall 5% .
In addition, include Gu Ji and love horse be an official (Herms) inside a lot of brands, the price that is the market such as ground general England in the person it seems that is maintained in low, this is the consumption that thinks exciting tourist and local dweller apparently.
Although will measure with industry history standard, this kind of price differs the regression that is pair of normal, but poor dissimilation fixes a price when to be awaited than holding the post of before however more apparent.
Consumer reachs the information that gets on website of business affairs of electron of each brand oneself from frequent international journey, Internet, make them begin poor to this kind of price rationality to raise doubt. Nowadays value consciousness gradually in strong environment, in the market of in the maturity such as Japan high end, circumstance especially such.
But to each brand, make strategical adjust and unlike listens it is so easy to go up. The problem depends on: The basis is long the vogue that already formed is periodic, the price of luxury can shift to an earlier date normally half an year (earlier even) set, accordingly, each brand is changing established price respect to be able to exist lag.
Suo Erka expresses: “Those carry the brand of wholesale channel and product of sale of much brand shop, its adjust the flexibility of the price to be restricted especially. When a series of products selling with specific price after be revealed in vogue only and promoting an activity, they just can incur exchange rate risk truly. They just can incur exchange rate risk truly..
Accordingly, although love equestrian be an official and Luyiweideng to wait,have perpendicular unifinication retail trade the brand of Wu can make sharper reaction, and can timely the price that adjusts oneself, but the wholesale associate that other brand still must consider him, if they think,be in especially same a word that uniform price keeps inside the area.
Dapijiao expresses, the settlement in draw up the plan of channel conflict problem includes: Develop different range of products, or “ undertake tearing apart to line of the products, show the phenomenon with a large number of similar products with avoiding whole trench to go out. This meeting makes each brand answers exchange rate to fluctuate better, still can make they are avoided at the same time suffer wholesale channel to play the effect that discount, latter is another serious price problem. Latter is another serious price problem..
But she expresses, the price is decision-making the target that should not consider to realize consistency of all market value only, and should turn for the consideration but timely adjustment dynamic price — till country this level.
The report of Si Tan company of Bern of mulberry Buddha · shows, luyiweideng brand that owns strategy of the most complex price, “Undertaking price fine tuning according to different market inside euro area “ . Ba Baoli established framework of price of a whole world: Various places can is based on fiducial evaluate pair of final prices to give out opinion, it is in the meantime ensure can achieve total profit goal finally.
Dapijiao expresses, “Through strategical the ground reduces the price in certain market, each brand can grab market share in the industry environment of ten thousand changes in the twinkling of an eye probably; On the other hand, they can keep higher price in other market, this will make them capable to undertake reinvest to oneself brand. Regretful is, a lot of brands lack system of this kind of information at present, cannot implement this one strategy consequently with a kind of scientific way. Cannot implement this one strategy consequently with a kind of scientific way..
Article author is fashionable estate adviser is mixed “ Luxury Society “ chief editor