OnDemand WTP Pricing Research

Price Benchmarking is Crucial for Global Luxury Brands | Jing Daily

Many Chinese customers shop for their favorite luxury brands based on the lowest prices they can find. They watch currency fluctuations carefully to see if one region happens to have a value dip (like when the U.K. announced it was leaving the EU, for example) and then travel to that country specifically to buy luxury products.

With Chinese luxury spending accounting for approximately one-third of the global luxury market and millennials now comprising around 30 percent of China’s population, the price variance between China and Europe or other countries in APAC must be carefully monitored by luxury brands when they define their pricing strategies.

That’s when they look to price benchmarking: one of several solutions used by brands, especially from the luxury industry, to analyze price positioning. “Price benchmarking enables premium and luxury brands to adapt their price strategy according to ongoing market developments such as what we see with the decrease in VAT in China,” says Carole Vienne, Managing Director of Wisely Insights, about this popular strategy.

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Price Benchmarking is Crucial for Global Luxury Brands | Jing Daily.

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