Price DECREASE
- Thread starter Ryan
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There's a price decrease in the UK too!90 silks now down from £310 to £280. Bags seem to have stayed the same though.
Still cheaper to buy from Europe, but it's a promising start!
Where are you seeing this? it's still £310 on H.com UK site.
There's a price decrease in the UK too!
Still cheaper to buy from Europe, but it's a promising start!
Ignore me! The front page hasn't been updated on h.com UK site. But if you click into the scarf, it shows £280.
UK CSGM is now £760! Was £840 before! I am so pissed off now! They should have done this at the beginning of the year!
I was told there would be no decrease on bags.
I guess I'm the only one here who doesn't see this decrease as a good thing - sure, scarves are now $50.00 less, but who would want an equal drop of 10-12% in their portfolio or 401k?
These luxury price decreases don't bode well for the economy. I notice that the consensus on Hermes stock is now a "hold" with a number of brokers labeling it a "sell"
It may be a good time to buy a scarf, but it's not a good time to own stock in high end retail.
I guess I'm the only one here who doesn't see this decrease as a good thing - sure, scarves are now $50.00 less, but who would want an equal drop of 10-12% in their portfolio or 401k?
These luxury price decreases don't bode well for the economy. I notice that the consensus on Hermes stock is now a "hold" with a number of brokers labeling it a "sell"
It may be a good time to buy a scarf, but it's not a good time to own stock in high end retail.
I understand your point, while I'm personally happy for my savings on planned Fall purchases I have a shawl that's on consignment for full retail now. If I can even get it to sell by reducing the price I'll have to take a 14% loss before the consignment fee so a huge loss overall.
I know that Chanel and Celine did increases, did anyone else decrease prices?
I thought Chanel decreased their prices. I know Gucci and LV decreased in Asia.
There were quite a few Luxury retailers who adjusted prices in the early spring. At the time Axel Dumas stated that Hermes would not be decreasing prices, but I had already been told that that was a posibility.
The official reason for the decrease is currency discrepancy, but there's more to it than that. Demand is down on high end products across the board. A good friend of mine is a buyer for one of the major dept. chains and she said it is beginning to feel like 2008 again in their sector. Either people are shifting purchasing dollars to other categories, or the economy is weakening. Either way, forecasters like Bain and Goldman got it wrong.
And yet I received this New York Times news summary just this morning (granted it's just the U.S.):
U.S. Economy Adds 223,000 Jobs; Unemployment at 5.3% Thursday, July 2, 2015 8:35 AM EDT
The American economy is entering the summer powered by a decent head of steam, with employers adding 223,000 jobs in June. After bottoming out in March as the overall economy stalled, hiring has rebounded in recent months along with other indicators like home sales and consumer spending. The consensus called for an increase of 233,000 jobs. The job market’s steady pace of growth this year, and also the American economy’s overall strength, stand in sharp contrast to the situation overseas. Europe has been rocked by the continuing drama over whether Greece will exit the eurozone, and concerns are rising about the fallout from the slowdown in China’s once white-hot economy. Policy-makers at the Federal Reserve are keeping a close eye on conditions abroad and volatility on Wall Street and overseas exchanges, which could shift the timetable for the central bank’s long-awaited increase in short-term interest rates if markets show signs of panic.
Do you think there's just a delay in when changes are actually seen and felt compared to when they're actually happening?
U.S. Economy Adds 223,000 Jobs; Unemployment at 5.3% Thursday, July 2, 2015 8:35 AM EDT
The American economy is entering the summer powered by a decent head of steam, with employers adding 223,000 jobs in June. After bottoming out in March as the overall economy stalled, hiring has rebounded in recent months along with other indicators like home sales and consumer spending. The consensus called for an increase of 233,000 jobs. The job market’s steady pace of growth this year, and also the American economy’s overall strength, stand in sharp contrast to the situation overseas. Europe has been rocked by the continuing drama over whether Greece will exit the eurozone, and concerns are rising about the fallout from the slowdown in China’s once white-hot economy. Policy-makers at the Federal Reserve are keeping a close eye on conditions abroad and volatility on Wall Street and overseas exchanges, which could shift the timetable for the central bank’s long-awaited increase in short-term interest rates if markets show signs of panic.
Do you think there's just a delay in when changes are actually seen and felt compared to when they're actually happening?
I guess it's more complex with the other brands, I just did some googling. Chanel increased in euros and lowered in Asia to try to level the prices globally. Celine raised prices twice in US and Euro since the beginning of the year but I couldn't find any stats on other currencies. I don't follow Gucci or LV but both brands prices seem high to me for their more basic bags.
Interesting observation by your friend, I certainly hope we're not headed into another 2008 atmosphere. My business relies on these same designer consumers to consume my services! We'll just have to wait and see...
High end retail is really suffering. I've received more "gift card with purchase" and "friends and family" offers this year than I've ever received since on line shopping became so prevalent. Saks sent me an offer of a six month no interest payment on however many items over $750 that I might purchase. I was floored. A neighbor that works at a higher end retailer told me she her 2015 commission will be significantly less than the last several years. A cursory look at eBay tells you high end items are not moving there either.
It concerns me also. Don't want to go through another 2008.
I will take advantage of the lower CSGM prices, but otherwise am holding tight and keeping a close eye on the market.
I was told that they would give adjustments on anything purchased in June, but they might be flexible with long-time customers. I would hope that an end of May purchase would qualify.
I think there is always more to the story than the numbers suggest:
U.S. labor market took one step forward and one back in June as job creation advanced while wages stagnated and the size of the labor force receded.
http://www.bloomberg.com/news/artic...-u-s-rose-in-june-with-little-change-in-wages
It seems there is a general consensus that this has been and continues to be a very weak recovery- low wage growth, lower participation rates, etc. However, I don't know that that is the primary driver of weaker than expected luxury sales. Part of it is changing tastes, consumers spending their money elsewhere and on other types of purchases. Most of the luxury retailers began ramping up production and expanding prescene a few years ago in a wide display of over-confidence. That will probably slow down to some degree to bring production in line with demand.
A one time price adjustment is not a big deal, but if prices drop again, it will signal a real problem.
If this decrease is truly a response to currency fluctuations, and the Euro / Dollar reaches parity around the end of the year, will H revise US prices down again?
If so, then you have deflation psychology to deal with - who would buy today if they believe prices will be less tomorrow? Markets thrive on the expectation that prices will increase, not fall.