Chanel promises fairer prices for China
18/03/2015
Speaking to media in France on March 17, the president of the company’s fashion business, Bruno Pavlovsky, said that under the new policy, the price of a Chanel product in a store in China would never exceed the price in euro of the same product by more than 5%. At the moment, luxury goods can cost as much as 40% more in China compared to France, Chanel has said.
Mr Pavlovsky explained that some difference would inevitably remain because of the high levels of duty luxury brands have to pay to bring their products into the Chinese market. He went on to say that the price difference would never be greater than 10% in any market in the world.
China, now Chanel’s third-biggest market worldwide after the US and Japan, merited particular consideration, Mr Pavlovsky said. He explained: “In a world that’s increasingly open and increasingly connected, the difference in the sales price for a Chanel bag between Paris and China was becoming a real problem for our brand image.”
The new global price structure will come into Chanel’s 190 boutiques from October onwards.
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