The change in strategy of international luxury brands generated a phenomenon that can already be felt by the consumer: prices are falling. Businessmen estimate that the fall in the values charged for bags, shoes and other items reaches 30%, in relation to that charged for about a year.
In the case of designer Salvatore Ferragamo, who recently ended the licensing contract in Brazil to install a direct operation, having in front the Fábio Executive Gianni, Director-General of the South American market. "We believe that, with prices close to those committed abroad, and with increased investment in marketing, sales to grow between 30% and 50% in Brazil," he says.
"About 3% of customers brand, worldwide, are Brazilians," says Gianni. "We want to continue to serve them in the best possible way." For this, the three designer stores located in malls Iguatemi, Cidade Jardim, São Paulo, and in the shopping Leblon, in Rio, were temporarily closed to suit to the world standards. Only the point of rua Haddock Lobo, in São Paulo neighborhood of Jardins, remains open-being operated by former franchisee for over six months. The next planned expansions are to Brasilia and Curitiba.
The product mix will grow, says the Executive, to stay aligned with the outside shops. The prediction is that the points are in operation by the end of this month.
When operated via franchise, the prices of the Salvatore Ferragamo came to be between 50% and 100% more expensive than abroad, what desestimulava the purchase. But now the fall in prices will not be a problem. "We are changing the retail concept and we will win in sales volume," says Gianni. Much of this sale will be made in installments. "In Brazil, 80% of credit card sales are splitted in at least three times."
Sell luxury product in soft benefits is also policy adopted by retailer Sephora. In Brazil, 24 Faubourg perfume Eau de Toilette, the French fashion house Hermès, costs $ 365. At Sephora of United States, the same 50 ml glass goes for $ 102, a little more than $ 200. But here, the consumer can pay in up to 12 times.
The French brand of bags and handbags Longchamp has been adopting the practice of price reductions for some collections. "Today, our products are about 20% more expensive in Brazil, but the idea is to lower the gap to 10%," says Kika Rivetti, marketing coordinator. "In addition to lower prices, the consumer can still divide the payment into four times."
In fact, comparing the prices in euros or dollars, you can tell that there has been an effort to leave the local purchase more attractive. The same model of Italian Prada Handbag, for example, which costs about $ 2,000, in the United States, comes to Brazil around r $ 4 mil-roughly the value of the conversion. Already the Pigalle pumps, Christian Louboutin black varnish, is sold on the website of the brand for $ 625. In Brazil, the same model sells for $ 1,790, value about 30% higher. But here there is the extra advantage of installment.
The consultant Luiz Alberto Marino, Managing Director of GS & BW, says luxury brands are already known to Brazilians. "Now, these brands need to become relevant to the consumer and one of the ways to do this is by having lower prices". The fact of the brands are opening more stores, increasing the volume of products, helps to reduce prices.
And this phenomenon is not restricted to São Paulo, also going to Curitiba, Rio de Janeiro and Recife. "We are the target of the time," says Marino, But makes a caveat: "it is still a very big effort to make prices here become aligned with the outside. Our import structure and the high fees charged make everything. "
There are designers who prefer to cut the profit margin. The Swiss watch brand IWC and Panerai opened stores in São Paulo in 2012 and sought to bring the prices charged here in the u.s. and those in Europe. The IWC decided to absorb the costs of import and tariff rates and the price in Brazil was 5% above the charged in the United States, said in January the value, Michel Cheval, Director of the IWC.
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