According to the analysis, Hermes and LV are still sold too cheaply
Hermes and LV are two prestigious luxury brands with wide recognition and high price positioning in the global market. Sometimes, however, some analysts argue that their products are underpriced.
The emergence of this view may be based on the following considerations:
Brand value and scarcity: As the world’s top luxury brands, Hermes and LV are famous for their unique designs, exquisite craftsmanship and high-quality materials. The brand’s history, heritage and uniqueness all add value to it. Some believe that this value should be reflected in product pricing, ie higher prices.
Market demand and supply: Hermes and LV products are usually in short supply, especially some popular styles and limited edition products. The situation of relatively scarce supply has led to high market demand, and some people believe that brands can further increase the price of products to match the market demand.
However, it should be noted that the pricing of luxury brands is a complex process that is influenced by multiple factors. The brand will determine the price of the product by considering multiple factors such as market demand, brand positioning, target customer group, production cost, brand image and competitors.
In addition, luxury brands also need to balance the relationship between brand image and market acceptance. If the product price is too high, it may exceed the purchasing power of some consumers, thereby limiting the potential for sales and market expansion.
Therefore, although some people think that the prices of Hermès and LV products are low, the brand will comprehensively consider various factors in its pricing strategy in order to achieve sales goals, maintain brand reputation and meet market demand. Ultimately, brand pricing is a balance of factors designed to preserve the brand’s uniqueness and value, and match the purchasing power of consumers.
