China reduce customs duties, while luxury cuts costs: in China Louis Vuitton knock down the prices by 3 to 5%

Louis Vuitton has been the first luxury fashion brand to make a move: in fact, they decided to knock down the prices of their articles following China’s reform, entered into force last July 1st, about new customs duties on import of luxury goods and commodities. Chinese Jing Daily newspaper has been reporting it while quoting an official communication, released by the fashion brand itself, in which they announced that Louis Vuitton’s Chinese branch “is going to back up and comply with the decisions, made by central government, that aim to cut the prices of luxury items imported from abroad”. As regards the early consequences of such measures, both on the fashion house’s Chinese e-commerce website and in some of its most important flagship stores, placed in China, prices dropped considerably: 300 to 1,500 yuans (that is, 38 to 194 euros) less per article, which means an overall reduction by 3 to 5%. There we go with some real examples: Neverfull MM bag, whose previous price was 10,400 yuans, now costs 9,900 yuans (1,284 euros, left); the price of NéoNoé Monogram Canvas (left) goes down as well, from 12,300 down to 11,800 yuans (that is, 1,530 euros). In 2011, the prices of luxury items, purchased by Chinese customers in other countries, used to be, on average, 68% lower than China’s prices; in 2017, as reported by government sources, such gap has decreased, on average, until 16% only.


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