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[Promotion] China Broadcasting Network: w88 login analyzes the reasons for price increases of international first-line cosmetics brands


Release time: 2011-01-09 Number of views: 8550_8609 times Editor: Xiaofeng

International first-line cosmetics brands collectively increase prices, channel monopoly is the main reason behind the scenes

(2010-12-31 20:47 Source: China Broadcasting Network)

China Broadcasting Network Beijing12month31Message(Reporter Wang Kaishan) Suddenly overnight, the collective price increases brewed by international first-line cosmetics such as Dior, Lancôme, Biotherm, and Chanel began to materialize, starting from1month1Starting from the 9138_9161|, the prices of these luxury goods in the cosmetics industry have increased together, by a range of10%About. These cosmetic brands have chosen invariablyUnfavorable factors such as rising raw material costs and continued inflation9280_9302

A senior person in the cosmetics industry who did not want to be named told me,In fact, raw materials account for a very small proportion in cosmetics.And this year, the increase in the raw materials of cosmetics such as animal and vegetable oils is not obvious, whether it is from raw materials orCPIJudging from the adjustments, there are some reasons for foreign investment to increase pricesFar-fetched

And on Fifth Avenue Luxury NetworkCEOSun Yafei believes that the price increase of these cosmetics brands this year is mainly due to the increase in advertising investment.

Sun Yafei:The most obvious occurrence is the cost of online advertising. According to the latest data this year, online advertising has more than doubled than before, which has caused a substantial increase in the cost of cosmetics.

Zhu Mingxia, director of the Cheung Kei Luxury Goods Research Center at the w88 casino, who has been tracking luxury brands all year roundbelieves that it has become a routine for these luxury brands to increase prices every year. The main reason why they increase prices whenever they want is because luxury brands firmly control sales channels.

w88 login: "Because the current luxury goods consumer market in our country is now in its infancy. From the perspective of consumers, of course they pursue famous brands. When foreign companies themselves can make 100% money, they will not let others join or do it, and will adopt a direct operation model."

A latest Internet survey shows that,90%'s consumers cannot accept the price increase of high-end cosmetics because their profits are already high. But w88 login believes that cosmetics companies will not pay attention to the results of this survey because luxury goods manufacturers are very familiar with the psychology of Chinese consumers.

w88 login:"Just because the Chinese like you, I use the price-based pricing strategy of "prestige pricing." If the brand is high and famous, the price can be much higher. The Chinese accept it in their hearts. Because the price is low, you may not accept the product. Many consumers say are there more expensive ones? Compare and follow the herd. So at present, the Chinese consumer stage determines the result of the current channel monopoly."

From an international perspective, these luxury cosmetics brands are alsoWatching people order dishes, they allow local dealers to join in the operation. w88 login proposed that as the consumption psychology of domestic customers gradually matures, channel monopoly will gradually be broken.

w88 login: "Now, blind pursuit is a consumption behavior for a symbol of identity and status, which is just a label. In the second stage of luxury goods, people will enter an experience, or appreciate the value of a brand more, or enjoy culture, etc. So when consumers become rational, the entire market will not reach monopoly."

Link:

http://www.cnr.cn/jingji/yaowen/201012/t20101231_507537852.html



 
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