The global leader in luxury apparel, Louis Vuitton, has slashed its retail prices in China following the Government’s efforts to cut costs of luxury products that are being marketed in the country.
Beijing’s Finance Ministry has softened the taxes on imports for an average of 20.7 per cent, with a vision to enhance purchases in the country. This step is taken by the Government, as reportedly the sales of luxury goods outside China in 2011, were around 68 per cent inexpensive than those same products sold across the country.
Notably, the difference has come down to 16 per cent in 2017 due to the steps that were taken by the Government over the period.
Furthermore, a decline between 300 yuan (about 40 euros) and 1,500 yuan (just under 200 euros) is expected from Louis Vuitton on various goods; the average price reduction, according to the company, would be between 3 and 5 per cent.
Additionally, French fashion accessories retailer Hermès has reduced prices of 100 to 500 yuan, covering their scarves and other accessories, along with several womenswear apparels. However, a spokesperson from the French company has reportedly said that this development has not had a major impact on consumers, as those who shop for luxury goods does not care about prices.
It is important to mention here that back in 2015, luxury apparel brand Chanel introduced a ‘harmonised’ pricing policy to cut costs and improve purchases in China. It remains to be seen how many other luxury brands opt for the same policy to support the Chinese Government move.
