Luxury Auctions Weaken, Price Cut, Appreciation Bubbles Rise

Christie's international auction companies will hold a luxury handbag and accessories auction in Hongkong in June 11th. The selected products are mainly of the top category and limited edition classics that are highly respected by the world's handbag collectors. Among them, Hermes 2007's Black Crocodile Skin diamond 40 cm platinum package starts at a price of 129 thousand -19.4 million; the 2014 version of the bright Bordeaux and the ocean blue two color Nile crocodile skin 25 cm platinum package starts at 32 thousand -3.9 million dollars, two of which amount to about 198 thousand -120.3 yuan.

This is already a rare luxury auction since the downturn in the luxury market. It has been a hot spot for auction companies and pawn shops.

It is understood that in the past, most of the luxury goods were gifts, so they took the luxury goods to the market.

The sellers are expected to receive a small amount of money, which results in the luxury secondary market being particularly popular because of its low price and good quality.

But now used

The embarrassing situation of businessmen confirms the difficulty of the circulation of luxury goods and the indifference of the consumer market.

Not long ago, the Milan listed on the list of listed companies and second hand luxury brands announced that they had failed to sign an agreement with potential buyers of independent third, and the sale plan, which had lasted for six months, was shattered.

Its deficit in the past year has reached HK $50 million and its turnover has dropped by 11.8%.

Second hand luxury goods are getting nowhere.

Zhou Ting, President of the Institute of wealth and quality, said luxury goods

Appreciation has always been a marketing gimmick, but it is easy to be verified in the secondary market.

In the past, luxury brands could adjust their price by 15%, and it was also a strategy to maintain the image of high-end brands and value preservation. However, for mature markets, the single price raising strategy became more and more difficult.

For example, in some pawnshops, the new luxury goods, which are generally not commemorative and limited, can be purchased at half price of the original price.

As France's top luxury brand Chanel lowered its price around 20% in March this year, consumers began to be skeptical about the value of buying luxury goods.

Taking Chanel's price reduction policy as an example, the salesperson at the The Peninsula Beijing Hotel counters told the Beijing Commercial Daily that only those who had purchased bags within half a month before the price cut had to deal with the replacement price difference, and the difference was only used for shopping in the store again.

This means that the consumers who bought the price cut before the price cut before the price reduced their bags.

Analysts say this is a minor injury to some brand fans, and is still very sensitive to prices for most Chinese consumers.

More importantly, the value preservation bubble of luxury goods has been punctured.