Why Do European Luxury Goods Do Not Cut Prices In The US?

It is reported that since the European Central Bank announced the launch of quantitative easing (QE), the euro has fallen sharply, but at present

European famous cars to the US,

There is no reduction in the price of alcohol. The main reason is that the United States has too much demand for European brands, and the reason why producers do not have a price reduction, and the exchange rate benefits brought by the depreciation of the euro fall into the pockets of manufacturers.

German car sales in the United States, Audi sales increased 15% last year, BMW and Mercedes Benz rose by 6.5% and nearly 10% respectively.

Car industry analysts say the business of European cars is increasing, without a price reduction or even a possible price increase.

When the company changed its profit from the US dollar to the euro, it made a profit because of the widening of the spread of the exchange rate. The depreciation of the euro also failed to benefit the American consumers.

The American Beverage Importers Association explained that the Italy famous liquor sold in the market now includes Brunello and Chianti Classico, and the contract was signed 3 or 4 years ago.

The production cycle is about one year, and the market is sold before the depreciation of the euro, so the retail price can not reflect the exchange rate difference in real time.

Another reason why Americans do not feel the reduction in European imports is the sharp increase in premium brands in Europe over the past few years. For example, Chanel Classic handbags rose from 2250 US dollars in 2007 (about 14 thousand yuan) to 4900 US dollars last year (about 30 thousand yuan); LV Monogram Canvas handbags also rose from 970 US dollars (about 3884 yuan) to 970 US dollars (now about 6077 yuan), and even now the price reduction is much more expensive than a few years ago.

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Why, thank you very much!

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They are abnormal, strange, and a little bit disobedience.

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