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Louis Vuitton is lowering its retail prices in China

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LMVH maison Louis Vuitton is lowering its retail prices in China. In a statement issued by the maison to the newspaper Jing Daily, the brand announced that it had decided to “lower prices on a wide range of products to support the government’s efforts to reduce the cost of luxury goods sold in China”.

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The Ministry of Finance in Beijing, starting from the first of July, has lowered taxes on imports for an average of 20.7 percent, with a view to favoring purchases in the country. In 2011, luxury goods sold outside of China were about 68 percent cheaper than those same products sold in China; thanks to the measures adopted over time, in 2017 the difference decreased to 16 percent.

The new prices of Louis Vuitton would have already been updated on the Chinese e-commerce of the brand and in stores. The estimate is that of a cut between 300 yuan (about 40 euros) and 1,500 yuan (just under 200 euros) on different products; the average price reduction, according to the headline, would therefore be between 3 and 5 percent.

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It is still unclear whether other luxury fashion houses will follow the same strategy as Louis Vuitton, but a chain effect is expected. For example, since 2015, Chanel has adopted a “harmonized” pricing policy, with the aim of reducing the price gap in China and abroad, and thus encouraging purchases in the country.

(Source: Fashion United)

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