Recently, a number of luxury brands have announced price increases, and the luxury market is booming.
Under the expectation of "preservation and appreciation" of luxury goods, some consumers are stimulated and have the idea of investing.
Analysts reminded that luxury goods themselves do not have real investment value, and consumers should remain rational.
Recently, the luxury brand Chanel has raised the price of its products again, and luxury groups such as Kering, Louis Vuitton, and Rolex have also reported price increases. Louis Vuitton has raised prices globally by 5% to 15%. %.
The reporter visited and found that the sales of luxury goods were not negatively affected after the price increase, and the price increase even stimulated consumption.
With the "normalization" of luxury goods price increases, some consumers tend to "buy late rather than buy early", and some consumers think that luxury goods can "maintain and increase in value", which motivates the idea of investment.
In this regard, analysts pointed out that the continuous price increase of luxury goods and hunger marketing may cause some consumers to flock to it, but luxury goods themselves do not have real investment value, and consumers should live within their means and make rational choices.
Continuous rise, luxury is comparable to financial management?
"I hesitated when I wanted to buy it two years ago, and then there were continuous sharp price increases. When I made up my mind to buy it, it was already more than 50,000 yuan." Faced with the rising prices of luxury goods, Cui, a consumer in Beijing, said: Ying said helplessly.
In March this year, four months after the last price increase, Chanel announced another price increase.
After continuous price increases, the price of one of its classic handbags has risen from 38,100 yuan in 2019 to 62,700 yuan, an increase of about 60%.
Some consumers joked that buying a package is comparable to financial management.
According to the report "Ten "Wealth Management Packages" in 2021 released by Koala.com, some packages have even increased by as much as 95% since last year.
Even according to the average increase, the price of most luxury goods has increased by 5% to 20%.
Rolex has not only outperformed the Dow Jones Industrial Average over the past year, but other investments like gold and real estate by a wide margin.
Earlier this year, UBS said "price flexibility" was one of the key features of the luxury industry, with leading brands such as Louis Vuitton increasing prices on average at 2.5 times inflation over the past 20 years.
"Luxury goods never seem to lack consumers." A teller at a luxury counter admitted that, on the one hand, most of the responses given by luxury goods companies were that they could not bear the cost pressure, so they raised prices; new highs.
Judging from the financial reports of major luxury goods companies, in the past two years, some luxury goods companies have repeatedly hit new highs in revenue, and their sales revenue has increased significantly.
The person in charge of Chanel has publicly stated that the symbolic value of luxury goods is higher than the use value, which gives it an imaginative premium space.
Luxury is not a commodity that everyone can afford. When the resistance to obtaining commodities increases, it is easier to enhance consumers' desire to buy.
Some consumers concluded: "The price increase of luxury goods is to stimulate consumption and stimulate everyone to buy."
The more it goes up, the better it sells, and the better it goes, the more it goes up?
The reporter visited some offline luxury stores in Beijing and learned that the price increase did not affect the sales of luxury goods.
"As soon as the news of the price increase came out, it was better to sell. Some customers thought that they made money when they bought it. In addition to the classic models, the sales of some styles that were rarely used in the past have also increased." A clerk said that there are often shortages in the store now. , Out of stock.
"Because of the new crown pneumonia epidemic, the current supply of goods has become difficult to transport, and there is no stock in the store, so there are not many people in the store." A teller at a luxury goods counter in Beijing SKP said that there were few customers in the store, and customers who wanted to buy things increased With WeChat, there are already hundreds of people, and some customers have to wait half a year to get the goods.
According to the "Bain Luxury Research" report, in 2021, the main consumer groups in China's luxury goods market will be under the age of 40, of which the proportion of consumers under the age of 24 will increase to 24.8%; it is expected that by 2025, consumers under the age of 25 will Become the main force in the luxury consumer market, accounting for 65% to 70%; the personal luxury goods market will grow at an annual rate of 6% to 8%.
Some industry insiders pointed out that during the epidemic, consumers' pursuit of popular products from top luxury brands has caused the supply and demand relationship to be out of balance, further driving the price of luxury goods to skyrocket.
Luxury brands hope to take advantage of this scarcity to become a "more desirable brand".
By increasing their desirability, they have a reason to justify their price increase.
The person said that the more popular the top luxury brands are, the more room for price increases, and as price increases become the norm, consumers will be more inclined to "buy late rather than buy early."
As a result, a "virtuous circle" of pricing power and brand appeal may emerge for luxury goods.
Be cautious when taking luxury goods as financial management
The reporter learned that with the "normalization" of luxury goods price increases, the second-hand luxury goods market has further increased its activity.
At a large second-hand luxury offline store in Sanlitun, Beijing, a clerk expressed optimism about the sales of second-hand luxury goods.
"There are a lot of people who buy. Some young girls have poor purchasing power, and they can buy 90% of the new bargains here. There are also some consumers who don't want to queue up for orders, and will come to buy almost brand new second-hand goods."
According to the "Report on China's Second-hand Luxury Goods Market" released by Yaoke Research Institute, the second-hand luxury goods market will expand from 28.5 billion yuan in 2020 to 47 billion yuan in 2021, an increase of 65% in one year.
Some experts pointed out that the frequent price increases of luxury goods have made many people have the idea of investing.
However, the commodities with real investment value and value preservation value are usually a small number of commodities with limited circulation, or even those that cannot be circulated in the normal market.
And luxury goods are still consumer goods with fixed consumption and purchase channels.
Zhou Ting, an expert in the luxury industry, said that unless it is precious metals, gems, and diamonds, because of the high value and scarcity of raw materials, they have certain investment attributes.
However, clothing, shoes and hats, luggage, etc. are essentially consumer goods and consumables, and do not have real investment value.
Some people in the industry believe that there are many brands behind luxury investment.
Under the influence of price increase expectations and brand building, consumers may experience irrational consumption behaviors.
For luxury goods companies, high-end consumer brands should spend their energy on providing consumers with good products and services for long-term development, whether it is from the perspective of respecting consumers or the reputation of their own brands.
For consumers, their consumption should be based on the existing economic foundation, living within their means, choosing rationally, consuming moderately, and being restrained, and they should not consume excessively because they are cheap before price increases.