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According to Beijing Business Daily, following the price hike in May, some luxury brands may raise prices again in September. It is learned from social media and some overseas purchasing channels that from September 1st, leading luxury brands such as Chanel, LV, Cartier, and Tiffany will carry out a new round of price adjustments.
Previously, luxury brands including Chanel and LV had already carried out one or more rounds of price increases this year. For example, LV has conducted two rounds of price adjustments from March to May this year. In the past, LV’s price adjustment frequency was usually once or twice a year.
Behind the new round of price increases is the shrinking of the luxury goods market. Bain Consulting data shows that in the first three months of this year, global sales of high-end handbags, clothing and cosmetics fell by 25%. At the same time, Bain predicts that the luxury goods market will drop by 20% to 35% in 2020, and it will not be able to return to the level of 2019, which is a total revenue of 281 billion euros, by 2023 at the latest.
Affected by the overall industry, most luxury brands experienced a year-on-year decline in revenue in the first quarter. 36 krypton has made statistics on this in previous reports:
Image source: public data; 36 krypton drawing
The price increase is hardly good for luxury e-commerce platforms. On the one hand, the luxury goods industry is inherently lack of large traffic. The e-commerce platforms for luxury goods are all self-operated by the brand. The brand has the full power to determine the design and layout of the flagship store. It is difficult for the platform to have bargaining power, so there is not much to expand profits. Advantage.
On the other hand, although some users of luxury goods are not very price-sensitive, rising prices of luxury goods may also lose some inherent users, which may not be a good thing for luxury e-commerce platforms.