Premium prices for Made in Italy in China
08/11/2011
Last year Mr Wong launched an exclusive retail chain in mainland China called Italian Fashion Galleria (IFG), which sells only Italian-made shoes. The first store opened in the city of Chengdu, in a 4,000 square-metre space, including a private room for special clients who prefer anonymity such as television and film stars, singers and senior politicians.
Speaking at the 2011 World Footwear Congress in Rio de Janeiro on November 8, he explained that he decided to stock only Italian shoes because Chinese consumers put a high value on them.
Mr Wong confirmed that the same shoes from the 40 brands he works with sell in IFG stores for 15%, 20% or even 50% more than they would cost in a store in Italy or other parts of Europe. “Chinese consumers accept it,” he said. “Many consumers would have difficulty travelling to Europe to buy shoes like these, so they will pay the price. Retail pricing is about pricing the product at the perceived value the consumer puts on it.”
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