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Luxury Brands May Be Planted On Prices.

2015/8/19 22:24:00 23

Luxury BrandsPricesMarket Conditions

With the intensification of competition in the industry, there is also a trend of "price war" between luxury electric providers.

Ren Wei warned that once the price war was launched, it would probably lead to the collapse of the whole industry. "Because consumers are concerned about the size, style, color and workmanship of the product in addition to the price."

At present, the source of luxury electric business comes from the purchase of professional buyers in luxury stores around the world, as well as luxury brands' agents in China.

No matter which channel is the source of supply, the electronic business platform does not have the pricing power, and even the right to bargain is not, only passively accept the price given by the channel providers, and ultimately sell the price to consumers even higher than the price of the offline stores.

Take buyers as an example, buyers buy goods on the basis of ordinary consumers, and then sell them on the platform. At that time, the selling price of goods is much higher than that of offline prices. "Because the platform not only guarantees its own profits, it also pays for the buyer's reward and freight."

Ren Wei said.

Even if you get goods directly from domestic agents, the electronic business platform can not guarantee that the price is cheaper than offline purchase.

Gan Xiaoming said, a brand package of 52 thousand yuan, the price of the brand agent is 45 thousand yuan, except the tax and operation costs, the platform gains only 3% of the net profit.

This is the ideal situation.

In most cases, it is difficult for luxury electric providers to cooperate with the first class agents of the brand. They can only cooperate with their agents at the second, three or even lower levels, which makes the cost price of the product higher and the space for the platform to increase the price.

"The capital that the electricity supplier depends on is the price advantage of the product, but the reality is that they do not have the ability to control the price of the product."

Ren Wei said that in order to attract users, some platforms can only maximize profits and will bring huge risks to the development of enterprises.

The most serious consequence is the backlog of inventory.

"Because the goods on the platform are offline or integrated.

Online retailers

On the other hand, there is no advantage in terms of price.

Ren Wei said, so the electricity supplier's capital is very difficult to turn around, "finally may cause the platform to collapse because of the shortage of funds."

Of course, there is also a platform that can provide a certain extent.

Price advantage

Products.

For example, LV Neverfull medium package, domestic shopping malls 9650 yuan, Hongkong 8320 yuan, Europe 6900 yuan, purchasing 7200 yuan, and a luxury electric business price is only 5790 yuan.

"It's much cheaper than buying offline."

A user who bought the product told the reporter that after she got the goods, she found that the product was very rough.

Physical store

The samples you see are quite different.

Later, she identified it as a luxury identification center.

Although it was proved to be genuine, the appraiser told her that this product belonged to defective products in the same batch.

"Some platforms will deliberately buy defective products so that they can be guaranteed to be authentic, and can also lower product prices."

Gan Xiaoming said, but he believes that this approach will eventually smash the signs.


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