Hermes: What Is The Difference Between Different Pricing Strategies?

Starting in nineteenth Century, Kylie has become a luxury group covering silk, garments, watches and perfume. Its most famous feature is Birkin and Kelly. Despite the slowdown in China's luxury market, Hermes is one of the few luxury brands that continue to thrive in the Chinese market.

Although it did not disclose its sales figures in the mainland of China, the largest market for Hermes, in 2014, remained double-digit growth with a growth rate of 13% after excluding exchange rate effects.

Far beyond competitors.

Axel Dumas has said that the situation in China will be more and more beneficial to Hermes, because Chinese consumers have gone beyond the stage of flaunt luxury brands and begin to enjoy the connotation of luxury brands.

In September 2014,

The first "Hermes house" in mainland China was unveiled in Shanghai, the fifth largest in the world after Paris, New York, Tokyo and Seoul.

For the different pricing strategies of luxury brands, it is hard to say which is better.

Guzez, Michel Gutsazt, vice president of KEDGE business school, told reporters that every luxury brand has its own positioning and market segmentation.

It also corresponds to its market segmentation, which determines who they compete with.

For example, although every brand has high priced products and low price products, GUCCI is not competing directly with Chanel, but competing with TOD 'S and Paris.

The average price of Chanel's main products is more than 2000 euros. The average price of GUCCI's main products is 1214 euros, while the average price of TOD 'S and Paris home are 1036 euros and 1033 euros respectively.

As for the adjustment of the price strategy of luxury goods, the Clemens Pflanz, founder and chief executive of Meisterkreis Luxury Association, told reporters earlier: "price adjustment will not affect brand image, but you have to choose and stick to your brand strategy. Consumers are willing to pay the same price as product value".

At the Christie's auction in Hongkong in June 1, 2015, Hermes broke the record of the highest price of handbags in the history of auction.

The price of a $222 thousand and 900 (1 million 381 thousand and 200 yuan) price of a Hermes purple red crocodile PPG bag is estimated to be 15% higher than that of the auction.