The Euro Continues To Slump, Luxury Prices Are Rising Against The Trend.

The euro's central parity of RMB fell below the "8" integer mark yesterday after Greece's withdrawal from the euro zone and the European debt crisis continued to ferment, creating a new low since June 2002.

Analysts say the euro is likely to continue to depreciate as the European debt problem is not optimistic.

It is worth noting that despite the continued downturn in the euro, many of the luxury goods and cosmetics that are known to be manufactured in Europe have been rising in recent years.

Euro to central parity of RMB: a 10 year low to enter the "7 era"

"It's not that the renminbi is too strong, but the euro is too weak."

As a matter of fact, the euro has entered the "long way down" since the central parity of RMB reached 9.6445 at the end of April 2011.

This decline has been accompanied by the ups and downs of the European debt crisis.

Data from the central bank showed that the central parity of the euro against the renminbi eased slightly in the first quarter of this year.

However, since the two quarter, there has been renewed concern about the withdrawal of Greece from the euro zone.

Affected by this, the euro slowed down to the central parity of RMB.

The resignation of Papademos, the former Greek prime minister, made the euro decline again.

Local time 22, Papa season Moss said publicly that the risk of Greece's withdrawal from the euro area exists in essence, and related preparations are under consideration.

If Greece defaults from the euro zone, it will have a significant impact on the euro area's financial system and the real economy, with an estimated loss of 500 billion to 1 trillion euros.

Affected by this news, the euro's central parity of RMB once again hit a new low of 10 years, and entered the "7 era": the central parity of the RMB exchange rate announced by the central bank on 23 showed that the euro 1 yuan was 7.9980 yuan on the day, down 781 basis points from the previous trading day.

Historical data show that since January 4, 2006, the euro's monthly average exchange rate for RMB has exceeded 11 in April 2008.

The euro's lowest monthly average exchange rate appeared in January this year, at 8.1178.

European luxury goods: prices have increased by more than 10%.

It is worth noting that although

Continued downturn, but many from Europe

Cosmetics and other recent prices have been rising.

Yesterday, in the Celine counters of a large shopping mall in Shanghai, the large ordinary leather "smiley face bag" was priced at 20 thousand yuan, compared with the price of about 17 thousand yuan before the price rise increased by 3000 yuan, or about 18%; the Dior "LadyDior" large leather sheepskin price was 32 thousand and 500 yuan, compared with 29 thousand yuan before the rise in price increased by 3500 yuan; while the large leather bag of a luxury brand was about 37 thousand and 500 yuan before the price rise, the price after the price increase was 41 thousand and 200 yuan, or about 10%.

In addition to luxury goods, some European cosmetics also increased their prices in the first half of this year.

Yesterday morning newspaper reporters visited several counters at Parkson, long Guang, Raffles and other shopping malls, and found that since February this year, many cosmetics brands including Dior, Biotherm, La Prairie, and some perfume brands have completed the price adjustment, and triggered a general price increase.

"We started to raise prices since April 1st, and the price increase was about 5%.

For example, this section of neck cream rose from the previous 640 yuan to the current 670 yuan, and the other frosting cream rose from the previous 460 yuan to the current 480 yuan.

Another perfume also rose from 730 yuan to 780 yuan.

CLARINS counter sales staff said.

"Some brands raise prices for existing goods, while some brands do not have a marked increase in price, but the price of new products is higher than in previous years, which is a disguised price increase."

The person in charge of a shopping mall told reporters.

In addition to the rise in the prices of products exported to China, some luxury goods have also increased their selling prices in Europe.

In order to raise prices in Europe, a luxury brand leader said that the increase in European prices is to improve its European profit margin, on the other hand, to narrow the difference between China and Europe, so that Chinese consumers can stay at home and make up for China's previously lost business.

Why luxury goods keep rising: there are three reasons for being independent.

Devaluation of the euro, in theory, should reduce the price of European products sold domestically.

Why do luxury goods and cosmetics need to be adjusted?

In this regard, a brand seller said that the merchandise being sold in the counter was usually ordered in advance, so it was impossible to temporarily change the price according to the short-term changes in the exchange rate.

Besides, the price of luxury goods and cosmetics is not only related to exchange rate, but also the rising cost of raw materials and labor is one of the main reasons for its price adjustment.

Relevant people also pointed out that luxury goods go to the market once or two times a year.

It has become a convention that "official statement" is to ensure its high-end position in the industry and consumers.

In fact, it is a special marketing method to create a kind of illusion that consumers have the function of preserving value and increasing value.

According to estimates, China will occupy 1/3 of the global luxury industry growth this year.

HSBC said that tourists from Asia will account for 35%-60% of luxury goods in Europe.

Another media report said that despite the slowdown in China and the debt crisis in Europe, the demand for luxury goods in mainland China is still increasing.

However, despite the increase in the price of luxury goods, European commodities and daily necessities have not risen.

According to the data released by the European Bureau of statistics, the inflation rate of the 27 EU countries in 2012 was 1 from 1 to April.

The prices of commodities and daily necessities continued to decline. Why luxury goods go all alone? For this reason, analysts believe there are three main reasons: first, the most obvious feature of luxury goods is always "look" for less than the demand; the two is the depreciation of the euro.

In the past year, the euro has depreciated by nearly 12% against the US dollar, and the depreciation of the RMB has exceeded 17%. The result has not only reduced the actual income of the luxury goods, but also made the domestic customers more eager to sweep the goods abroad.

In order to maintain profits, luxury goods naturally have the driving force to increase prices. Three, the United States and the European Union have recently adopted a loose monetary policy.

As some of the money flows into the luxury market, prices continue to rise.