Why Is Chanel's First Choice Handbag? Profits Are Amazing!

　 The handbag has an amazing profit margin.

Today, when you walk into any part of the world, Luxury goods Shops, you will find yourself Handbag Surrounded. They are the most easily sold luxury fashion items because they don't need size and try on: you just need to see if you like it, you buy it. That's the deal.

They are easier to create and produce than perfume, but profit margins are shocking: most luxury brand handbags are 10-12 times as profitable as their manufacturing costs. In Louis Weedon, the profit reached 13 parts of manufacturing cost. Handbags are the engine of the luxury industry. According to Coach's annual consumer survey, in 2000, American women bought two new bags on average, and by 2004, the data had turned to more than 4. In Louis Vuitton, Tokyo's largest four storey world store, 40% of all sales come from the first storefront, where only the flower bag, wallet and other small leather goods are sold.

　　 Small luxury goods brand The size of the company is relatively small.

Today, 60% of the market share of luxury goods is controlled by 35 major brands, such as Louis Weedon, Gucci, Prada, and George. Armani , Hermes And the annual turnover of Chanel brands is over $1 billion. In fact, most of the luxury brands we like to talk about are created by the humble artisans in eighteenth Century and nineteenth Century for making exquisite handicrafts by the royal family. During the Bourbon family and the Bonaparte family rule France, the luxury goods that modern people knew were born in France.

At the end of the nineteenth Century, the royal power declined, the bourgeoisie rose, the European aristocracy and the elite of the United States, such as the Vander Bill family, the Astor family and the Whitney family formed a closed circle. Luxury became their exclusive domain. Luxury is an element of life belonging to the upper class. It is desirable to join a senior club or to have a famous family name. Moreover, they are always small in quantity, usually custom-made, only to a small number of customers who are really good.

Today, these companies still call the founder's name. In fact, the vast majority have been bought and run by business tycoons. Over the past 20 years, they have turned a single brand into a big brand known by billions of dollars worth of big companies and earth people.

But what you don't know is that these highly famous brands may be very small. In all industries, scale is the main factor to compare the company or industry, but in the luxury industry, the scale does not seem so important, and some companies are very small. For example, Cardin (Cardin) has only 10 million euros in sales worldwide, and Carven (card) company has sales of only 12 million euros. This sales volume is less than that of a franchised store in German Volkswagen. However, it is undeniable that Cardin and Carven have a strong brand influence worldwide.

　　 The label of origin label

Luxury brands are fully protected by their logo and trademarks. They only provide manufacturers with a certain number of labels in each batch of handbags orders. Manufacturers told reporters that very few handbags really use the "Made in China" label. Even so, the technique is very subtle. Some handbag labels are sewn on the bottom of the suture of the inner pocket. In some handbags, the label is printed on the stamp size of the company's trademark. You need to use a magnifying glass when reading. In most cases, the handbags are labeled "Made in Italy", "Made in France" or "Made in U.K". The label of the word.

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