More Consumers Are Shunned After Gucci Raises Prices.

Under the backdrop of the industry as a whole, Gucci (Gucci) is also unable to bear. Gucci remained weak in the fourth quarter of 2014 and its revenue declined for two consecutive years. Kai Yun group (Kering) annual profit fell 4.4%.

Switzerland Luxury goods The head of the Fund said that some brands had been saturated in the Asian market and produced an aesthetic fatigue. Since 2012, due to the slow recovery of the global economy, the slowdown in China's economy and the government's anti-corruption have led to a sharp slowdown in the growth of the luxury goods market. The recent Ukraine, Middle East geopolitical crisis and Hongkong's "occupy the middle" movement have made luxury goods. market Worse.

Analysts and investors lack the ability to innovate Gucci, Gucci, and accessories are too many and too average. Raise price There is rapid criticism. They also said, "Gucci's sales and profits basically rely on low price products, luxury goods market can be selective too big now, high priced products will only attract a small number of consumers, but it will drive away more consumers."

Over the past 4-5 years, Gucci has increased its total price by more than 40%, which has also prevented many consumers from evade. Gucci may have to rely on cheaper products to increase sales.

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Prada group (Prada) released its 2014 fiscal year financial report, its profit decreased by 27.6% compared with last year, and Prada delivered the worst report card after the listing. The decline in sales was mainly caused by the retail strategy in the US and Europe, but the growth of the number of Chinese consumers in the Asia Pacific region increased. However, sales growth in Japan, the Americas and the Middle East failed to offset the decline in sales in Europe and the Asia Pacific region.

In the autumn and winter of 2014, Gucci and Prada both increased the sale of small handbags. The small handbags were about 20% less than the medium handbags, and the price difference was about 50% for the larger size handbags. For example, the small Gucci Swing Leather Tote Bag official website sells for 1100 US dollars, and the medium-sized size is 1350 US dollars. However, even the small Gucci Swing Leather Tote Bag is almost 3 times the price of the same Michael Kors dual use package, while Michael Kors is a large size! It can be imagined that most consumers will extend their wallet to which brand.

Industry insiders say the luxury market is becoming harder and harder to compete in the retail environment. Gucci, Gucci, Prada (Prada), Louis Weedon Louis (Vuitton) and Hermes (Hermes) and other traditional brands have no room to raise the price, that is, the price of luxury goods has bottomed out. The end of the good era of selling prices through the increase in price, luxury brands must lower prices in order to win more consumers to boost sales.