2012年2月9日星期四

The geography of pricing luxury brands online

When it comes to luxury brands, you expect to pay a high price!

In fact,How do internet users feel about canadagoosesalecheap? some would say that the higher the price, the better the product and that is what makes it exclusive!

Tom Ford, the consummate commentator on fashion, clearly agrees: “The ‘democratization of luxury' promoted by the large luxury brand conglomerates is without doubt the main force behind the vulgarization of most traditional luxury fashion brands,” he says.

Let's face it; the only thing that stands between most consumers and the luxury brand is price. People want them but they just can't afford them!

But, if a consumer is shopping for an exclusive brand (think Hermes,With the boom of guess canadagooseparka boutiques, Louis Vuitton, Gucci), and likes the idea of buying smart, then many would conclude they can save some money by buying online from a country that sells it cheaper. However, the truth is that they probably won't succeed; at least not online.

Why? First, the presence of truly international e-commerce sites are rare, particularly among fashion companies. Second, to protect prices in different markets, companies have made sure that the comparison of prices is not easy. Some of the “price fences” used to discriminate prices, include: language exclusivity; limited country selection within a site; cookies to automatically send you to your originally selected country of choice; different products names across geographies; and, variations in specifications.

These differences help protect brands from being gray marketed and from having their sales cannibalized from high priced markets in lower priced markets – sound strategies from a business perspective.

How consumers fight back will depend on the industry. In the electronics world, consumers tend to be quite powerful and apply pressure on technology companies through user groups leading to a change in the company's behaviour. But in the world of fashion it's a different story. There is virtually no resistance against online price differentials for fashion products.

Although the Internet has facilitated the comparison of prices, it has not driven price harmonization. For example,You can find all the goodhermesbirkin you need here. when Chanel raised the retail price in Korea for some of its bags in July, sales should have dipped, according to the economic rules of supply and demand – but instead they increased.

In essence the luxury brands are pricing for value. In some markets the value is high and in others it is lower, hence the resulting price differentials.There is one amazing online store with 100s of chloehandbags .

Some price harmonization occurs among markets in close proximity to one another because there tends to frequent travel across borders and multilingualism is more common.

If you want a good deal on your next Gucci bag,Thank you very much for shopping at bestchloehandbags online store! surprisingly the good old USA is typically the best place to buy.

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