[Commentary] Previously, rumors of international luxury goods will continue to rise in price continue to ferment. As soon as the news came out, LV, Chanel and other brands in stores in China frequently saw customers line up to buy. However, after the store officially completed the price adjustment, the offline customers of the relevant luxury brand stores quickly "cooled down" the purchase.

　　On the afternoon of May 14, a reporter from the China News Agency saw in the Chanel brand store in Shanghai Hang Lung Plaza that Chanel has officially completed the price adjustment of related products. According to the store clerk, the price increase did not involve all commodities, of which the price of the classic model increased significantly.

　　[Same period] (Clerk of Chanel Brand Store in Shanghai Hang Lung Plaza) Today (price) adjustments have been made.

　　(Reporter) Was n’t it adjusted yesterday?

　　(Clerk of Chanel Brand Store in Shanghai Hang Lung Plaza) Yes, (but) depending on which style you want to see, some of them are only partially adjusted, and others are not adjusted. For example, this style is now 48900 (yuan), the previous price is 42600 (yuan).

　　(Reporter) More than 6000 yuan (yuan)?

　　(Clerk of Chanel Brand Store in Shanghai Hang Lung Plaza) Yes, almost. It was sold out two days ago, and there are no classics, neither cowhide nor sheepskin. We have replenishment today, but today the price has been adjusted. Our prices have increased year by year.

　　[Commentary] Due to the impact of multiple factors such as the epidemic, the luxury industry has recently "grouped" to "help itself" by increasing prices. It is reported that LV, Chanel, Dior and other brands under the French Louis Vuitton (LVMH) group ran into price hikes across the board. Among them, LV has adjusted prices twice in two months. Some luxury goods purchasers told reporters that luxury brands adjust their prices every year by about 10%, but this year's increase is much higher than in previous years.

　　It is reported that in the first quarter, LV Group's global sales fell by 15% year-on-year due to the epidemic. Among them, sales in Asian markets other than Japan fell 32% year-on-year, Japan and European markets both fell 10%, and the US market fell 8%. LV Group said that its sales in Mainland China rose sharply in April, with a year-on-year increase of more than 50%. It is expected that sales in other global markets will gradually recover in May or June.

　　In this regard, Zhou Ting, a luxury goods expert and director of the Youke Research Institute, believes that the price increase this year when the epidemic is not over is actually very sensitive. It cannot be a long-term strategy for the head brand.

　　[Same period] (Luxury expert, Dean of Guest Research Institute Zhou Ting) Previously, luxury brands had (one or two) regular price increases every year. In the case of this year ’s epidemic, the price increase is actually very sensitive of. How to ensure sales and promote the improvement of profitability is the main purpose of all big names. Therefore, during the epidemic period, prices increased, and I think they still hope to maintain sales and increase their profit margins. In the short term, the price increase may have a certain stimulating effect on some consumers, and even rush to queue up to buy luxury bags before the price increase, but in the long run this effect is counterproductive. I think it is still a strategy in the shortest term for the top brand, but it cannot be used as a long-term strategy.

　　Reporter Xu Yinkang Yu Zhan reports from Shanghai

Editor in charge: [Wang Kai]