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Why Does Chanel Choose Handbags For Price Adjustment?

2015/4/1 21:23:00 50

ChanelPrice AdjustmentHandbag

Handbags are easier to create and produce than perfume, but profit margins are shocking: most luxury brand handbags are 10-12 times more profitable than handbags.

In Louis Weedon, profits have been achieved.

Manufacturing cost

The 13 part.

Handbags are the engine of the luxury industry.

According to Coach's annual consumer survey, in 2000, American women bought two new bags on average, and by 2004, the data had turned to more than 4.

In Louis Vuitton, Tokyo's largest four storey world store, 40% of all sales come from the first storefront, where only the flower bag, wallet and other small leather goods are sold.

Today, 60% of the market share of luxury goods is controlled by 35 major brands, such as Louis Weedon, Gucci, Prada, Giorgio Armani, Hermes and Chanel.

Turnover

They are all over 1 billion dollars.

In fact, most of the luxury brands we like to talk about are created by the humble artisans in eighteenth Century and nineteenth Century for making exquisite handicrafts by the royal family.

During the Bourbon family and the Bonaparte family rule France, the luxury goods that modern people knew were born in France.

At the end of the nineteenth Century, the royal power declined, the bourgeoisie rose, the European aristocracy and the elite of the United States, such as the Vander Bill family, the Astor family and the Whitney family formed a closed circle. Luxury became their exclusive domain.

Luxury is an element of life belonging to the upper class. It is desirable to join a senior club or to have a famous family name.

Moreover, they are always small in quantity, usually custom-made, only to a small number of customers who are really good.

Today, these companies still call the founder's name. In fact, the vast majority have been bought and run by business tycoons.

Over the past 20 years, they have turned a single brand into a big brand known by billions of dollars worth of big companies and earth people.

But what you don't know is that these highly famous brands may be very small.

In all industries, scale is the main factor to compare the company or industry, but it is

Luxury goods

The size of the industry does not seem so important, and some companies are very small.

For example, Cardin (Cardin) has only 10 million euros in sales worldwide, and Carven (card) company has sales of only 12 million euros.

This sales volume is less than that of a franchised store in German Volkswagen.

However, it is undeniable that Cardin and Carven have a strong brand influence worldwide.


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