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Tag: price cut

  • GM Korea to cut prices after disappointing sales

    GM Korea to cut prices after disappointing sales

    GM Korea, the Korean unit of General Motors, said Tuesday it has cut the prices of mainstay models in an effort to revive lackluster sales. Starting Tuesday, GM Korea revised the prices of its major models — such as the Impala sedan, Trax, and Equinox sport-utility vehicles — by up to 3 million won ($2,700). The company expects its “customer-focused pricing approach” to strengthen the position of those key Chevrolet vehicles in the Korean market, Cesar Toledo, vice president in charge of sales, customer care and aftersales at GM Korea, said in a statement.

    “Winning more customers, growing market share and sustaining trust in our brand are all crucial ingredients in building a sustainable GM Korea for the long term,” he said.

    GM Korea struggled with weak sales in Korea due to a lack of new models and labor-management disputes over jobs last year.
    In the January-November period, GM Korea’s sales fell 12 percent to 420,447 vehicles from 479,058 a year earlier. Sales figures for December are set to be released today.

    To drive up sales, the carmaker plans to introduce 15 vehicles into the local market over the next five years. It has launched the U.S.-made Equinox and the upgraded Chevy Spark since June. The Traverse SUV will be the next model to be added to its lineup.

    GM holds a 77 percent stake in GM Korea, with the state-run Korea Development Bank and SAIC Motor controlling 17 percent and 6 percent, respectively.

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  • Hugo Boss cuts prices in 12-month turnaround plan

    Hugo Boss cuts prices in 12-month turnaround plan

    German fashion house Hugo Boss says it will not return to growth until 2018 as it launches a turnaround that includes eliminating brands, slowing down store expansion and selling more online.

    CEO Mark Langer says 2017 will be a transition year as it reorganises its struggling wholesale unit that sells to US department stores. Already the company has cut €65 million (US$68.86 million) in costs.

    With Hugo Boss shares losing more than a third of their value in the past year, Langer’s recovery plan involves making more affordable clothing, in a move away from a declining luxury market. It will produce clothes only under the Hugo and Boss brands, narrowing its focus to casualwear and business attire. The Boss Orange and Boss Green labels will be folded into the Boss brand, and Hugo’s entry-level prices will be about 30 per cent lower than the Boss.

    Womenswear, which accounts for about 11 per cent of revenue, will become a lower priority with Boss withdrawing from New York’s fashion shows next year. There will also be more focus on casual clothes and shoes.

    Price tags will be adjusted internationally to close gaps caused by currency fluctuations, with prices in Asia coming down by about 15 per cent while European prices rise slightly.

    Langer predicts that wholesale revenue via department stores in the US will decline by at least 10 per cent next year, with that business hit lately by high-level discounting to lure shoppers.

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