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Jun
2014

Luxury price increases; an attraction or a deterrent?

The announcement in April by many of the top-flight luxury brands that they were increasing their list prices may have been the result of general economic pressures they have suffered in the past 12 months, or perhaps in the case of China, a means to demonstrate greater luxury status than those lesser known brands. The official line may well be the former and this may in fact be true, but at a time where Chinese luxury consumers in particular are being more selective about their brand choices and more conscious of value for money, have these brands taken the wrong approach?

Those brands that position themselves as affordable luxury may well become the winners with the Chinese consumer in the next few years, and those new brands entering the market have a clear chance to offer and deliver something different to those consumers who may feel that they have been oversold to by the more established brands. …

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