Text丨Steamed buns
Editor丨Steamed buns
Preamble:
From the news of Estee Lauder's price increase again, we can't help but think about such a question, who is used to raising prices if the performance is not good?
This question reflects consumers' thinking and questioning of the logic behind brand price increases, and also reveals consumers' sensitivity and pickiness about brand business strategies. In fact, the business phenomenon behind Estee Lauder's price increase again is indeed worthy of our in-depth consideration.
What are the factors that cause international brands like Estee Lauder to underperform?
Why do brands choose to increase prices to boost performance? What should consumers think of Estée Lauder's approach?
This article will analyze them one by one from multiple dimensions, and let's take a look at who is used to Estee Lauder's price increase again.
1. Who is used to Estee Lauder's price increase again?
Estee Lauder has always been a leader in the cosmetics industry, and its popularity and reputation are very high in the world, which can be said to be an international brand loved by many consumers, and has always been a star product in the hearts of many female consumers.
However, it wasn't too long ago that consumers noticed that the prices of Estee Lauder products they like to buy seemed to be starting to rise again. Although such a situation has occurred before, this time, Estee Lauder's price increase has attracted widespread heated discussions and attention, and more and more people have doubts and speculations.
It is understood that the reason why Estee Lauder will raise prices again is mainly because the group company to which it belongs decided to adjust the price of products worldwide, and this time the price adjustment is naturally indispensable to the "burden" of the Chinese market.
Judging from Estee Lauder's official statements and responses, they said in response to consumers' concerns that the range of products involved in this price increase is not wide, so they also hope that consumers can understand and support their decision.
Moreover, Estee Lauder's price increase behavior is carefully considered, and the factors involved are also very complex, including not only the price fluctuations of raw materials, but also the changes in production costs and labor costs.
It is not difficult to see that the reasons behind Estee Lauder's price increase again are actually very complex, and such price increases are also affected and restricted by multiple factors. But what exactly caused Estee Lauder's decision to raise prices?
Next, let's explore the logic and reasons behind it, and see who is used to raising prices if the performance is not good.
Second, who is used to raising prices if the performance is not good?
1. The price of raw materials has risen, and the cost pressure has increased
If we want to solve the mystery of Estee Lauder's price increase again, we must start with the increase in raw material prices.
In fact, not only Estee Lauder, but also more and more luxury brands and cosmetics brands have chosen to raise prices in recent years, and the most commonly cited reason behind this is the sharp rise in raw material prices.
Globally, due to a variety of factors, including natural disasters and epidemics, the supply side of raw materials has been affected to a certain extent, and the prices of some key raw materials have also risen sharply, and the cost pressure on cosmetics brands has also risen.
In such a situation, if the brand wants to maintain product quality and brand image, it is natural that the brand side cannot continue to bear it, so it can only choose to alleviate the cost pressure it faces through price increases, and also make the brand's operation more sustainable.
Of course, from this point of view, it is not unreasonable for Estee Lauder to raise prices again, because this decision it made is indeed to maintain product quality and brand image, and it is also out of desperation.
2. The brand strategy of international brands
In addition, the price will increase if the performance is not good, and for an international brand like Estee Lauder, the logic and considerations behind it are far more than that.
At such a time node, the competition in the market can be said to be extremely fierce, and various uncertainties have also put a lot of pressure on the brand, which has also caused a certain degree of "decline" in their performance.
In such a situation, the consideration behind Estee Lauder's price increase again is actually very complex, and the most important point is the brand strategy and positioning.
Although on the surface, Estee Lauder's price increase does not seem to have much effect on its sales, and may even make some original consumers disgusted and resistant, but in the long run, this approach can help Estee Lauder better maintain its high-end brand image and open a certain "value distance" from domestic brands.
In today's time background, the rise of domestic brands can be said to be extremely rapid, not only in product development and innovation has made a great breakthrough, but also in the brand image and marketing strategy is also in place, to the international brands have brought great impact and competitive pressure.
Therefore, as one of the representatives of international brands, Estee Lauder wants to be invincible in the fierce market competition, and naturally needs to make a difference, and also needs to respond to the current market situation through some more precise strategic layout.
In this context, Estee Lauder's price increase again can be understood as a "strategic" move, but also to maintain its unique brand value in the minds of consumers, so that its "cold" image can be continued, and to convey such a message to consumers - Estee Lauder's products are synonymous with luxury, quality and quality assurance.
Of course, it is not easy to achieve such a goal through price increases, because consumers' receptivity is not unlimited, once it exceeds its psychological expectations, it may even cause its disgust and resistance, and it will also have a certain impact on the market competitiveness and consumer loyalty of the brand.
Therefore, the consideration and decision-making process behind Estee Lauder's price increase again also requires high wisdom and strategic vision, a good grasp of the market and consumer psychology, and a breakthrough to achieve the expected results.
3. Conclusion:
Through the above analysis, I believe you have a certain understanding of the logic and reasons behind Estee Lauder's price increase again.
In the current time context, price increases have become the "consensus" of many luxury brands and cosmetics brands, and are also accepted and understood by more and more people, because they know that the price increase behavior of brands is not for no reason, but is affected by multiple factors and considerations, and is also for the sustainable development of brands and the interests of consumers.
Of course, as a consumer, it is also very necessary to question and pay attention to the price increase behavior of the brand, because only under the supervision and participation of consumers, the brand can better find the balance, and can also have a deeper understanding of the real needs and ideas of consumers, so as to make more accurate strategic decisions.
Therefore, in the face of the phenomenon of Estee Lauder's price increase again, consumers may wish to be more tolerant and understanding, and can also communicate and exchange with the brand through various ways and channels, and convey their ideas and suggestions to the brand, I believe that Estee Lauder will also listen carefully to the voice of every consumer and bring better products and services to everyone.
In addition, consumers can also give more support and encouragement to those brands that have made a difference and have unique charm through their own consumption behavior, so that they can stand out in the "tide" of the market, and can also feel the unique value and power conveyed by the brand, and jointly witness the development and progress of the entire industry.