Because rich people are a minority in any era, the money earned by this billionaire every year is far from enough to ensure the maintenance and development of luxury brands. Therefore, these luxury brands began to consider younger and more civilian. Moreover, it is true that the living standards and consumption levels of people all over the world are rising. If luxury brands do not lower their prices to attract customers, a number of luxury brands will attract customers away. Brand will cultivate your consumption habits and make you form brand inertia.
The first reason is very simple. You can see that any brand in any industry almost invariably develops low-end products to attract new customers. Because it is not enough for a big-name enterprise to rely solely on the consumption of wealthy people, it is necessary to attract new customers in order to expand its scale and increase its income, which makes it so-called open source. No matter in which era, the people who occupy a lot of wealth in society are always very few, and the rich can't just invest their money in luxury goods, so their consumption is not enough.
As the saying goes, three heads are better than Zhuge Liang, which may be equally applicable in the luxury goods industry. A wealthy businessman buys a bag of 1, yuan, so every ordinary person can surpass him by spending more than 3, yuan. If there are 3 people, each person only needs 3 yuan. The average profit is less when the quantity is piled up, but it is too big to hold the opportunity.
Moreover, lowering the price to attract the attention of young people and other emerging groups, with its brand influence and good quality, it is easy to capture the hearts of young people, so step by step cultivate their consumption habits and brand orientation. When you launch a high-end bag, as long as he has spare money, he will definitely buy it. Because he has formed a dependence on this brand, when facing other brands, he also obeys the buying inertia and chooses "his own brand", which makes the luxury brand popular.