Huge profits. This leads to confusion channels and retailers, as well as fake runaway prices, A cargo rampant. Although mainland China market sluggish growth in overseas markets can make up, but in the long term, with increased LV mainland China store rents and labor costs, profit margins decline, the situation will become more severe, thus forming a vicious cycle, and ultimately damage It will be the brand itself. In addition to revenue, the luxury of sustainable development can be the most important is to maintain a high premium, high premium is fundamental to brand image. It is worth mentioning that the first half of 2015, led by China, the Asia Pacific market (excluding Japan) sales accounted for 29% LVMH Group's global sales, the importance of self-evident. Implicit price soon? This year, the traditional retail industry Aihong luxury industry was not spared. The same as the French luxury giant Chanel launched the first global pricing strategy. April 8, the price gap between formal coordination Chanel various markets worldwide, the first price is the classic 11.12 and 2.55 handbag with Le Boy Chanel series. Chanel head of China said that Chanel price increase of about 20% in Europe, mainland China down 20% in order to narrow the price difference between the global market, adjusted spread will not exceed 5%. Many analysts believe that, as a luxury industry chiefs, Chanel prices in Asian markets triggered a chain reaction, the major luxury brands will follow global price adjustment system. Although Jean-Jacques Guiony had said LVMH Group has no plans to adjust the price structure, in fact, to balance the difference, LV handbags in Europe following a quarter price increase of about 3%, the average price increase of 5% in the second quarter. L'Oreal China and former executives Lu Xiaoming Montblanc China, has said publicly that, for all luxury brands, narrowing the spread at home and abroad must be a trend. But should not the European market by raising prices to narrow the spread, because spreads had always been unreasonable, luxury goods in the mainland China market price is overvalued. An industry source told Beijing Daily reporter, narrowing the spread has become the inevitable development of the luxury market, but the price has always been seen as a luxury brand, 'fell envy' behavior, so that luxury to take part implicit price. Luxury ships
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