Chanel brand lowers luxury prices in China

Global Business

Luxury brand Chanel has revealed future plans for an e-commerce platform, the online sales channel to start as early as the fourth quarter of 2016. This comes just one week after the company announced global prices changes, which involved reductions that were very welcome in China. CCTV’s Mi Jiayi filed this report from Shanghai.

Chanel brand lowers luxury prices in China

Chanel brand lowers luxury prices in China

Luxury brand Chanel has revealed future plans for an e-commerce platform, the online sales channel to start as early as the fourth quarter of 2016. This comes just one week after the company announced global prices changes, which involved reductions that were very welcome in China.CCTV's Mi Jiayi filed this report from Shanghai.

Highlights:

  • Chanel announced that it will reduce prices of some products in China in order to narrow regional price differentials, which it says have widened considerably due to the recent depreciation of the euro.
  • Chanel has simultaneously increased its prices in Europe, so that the price differential for three of its classic handbags between the two regions is now only about 2,000 yuan. Zhou says another reason for Chanel to narrow the regional price differences is to prepare for online sales channels which require unified pricing. Following Chanel’s move, other luxury brands including Prada and Dior have begun similar price adjustments in China as well.

Dean Crutchfield on the luxury price difference between China and the overseas market

For more on China’s luxury brand market, CCTV America interviewed Dean Crutchfield, Senior Vice President at Sterling Brands.

Dean Crutchfield on the luxury price difference between China and the overseas market

Dean Crutchfield on the luxury price difference between China and the overseas market

or more on China's luxury brand market, CCTV America interviewed Dean Crutchfield, Senior Vice President at Sterling Brands.