Chanel winning battle against grey market - leatherbiz: Leading news s Leatherbiz

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Chanel winning battle against grey market

05/05/2016
Luxury brand Chanel says it has been successful in curbing the grey market, which is helping boost revenue in China in spite of weaker demand for luxury goods.

By narrowing its price gaps between products sold in the US, Europe and Asia, Chanel says it has prevented smugglers from buying goods in one region to sell in another on the grey market.

"We reduced quite a lot the parallel market, mainly in Asia, and we have double-digit growth in our boutiques in mainland China," said Bruno Pavlovsky, Chanel's president of fashion.

He remarked that the company has an entire team dedicated to monitoring the secondary market. Despite the success in reducing grey market sales, Mr Pavlovsky conceded that Chanel expects slower sales growth this year.

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