Shopping rush at Chanel stores after price cut
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E-mail China.org.cn, March 20, 2015
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Chinese customers wait in a long queue to buy the products of Chanel at Plaza 66 on West Nanjing Road in Shanghai, China, 19 March, 2015. [Shiliupo] |
Stores of French fashion house Chanel in Beijing, Shanghai and Hong Kong have become crowded with customers following the move to cut the prices of its products. One of the Chanel stores in Shanghai was so crowded that the store had to implement a limit on the number of customers.
Chanel, the world's second-biggest luxury brand behind LVMH's Louis Vuitton, announced on Wednesday that a price adjustment will begin on April 8 when the prices will be cut in China and increased by 20 percent in Europe.
Many Chanel specialty stores on the Chinese mainland have already started slashing the prices of its products before the date. The price of one of its classic handbags had a reduction of more than 20 percent, as much as 10,000 yuan.
The prices of luxury brands in China have been much higher than other parts of the world due to their marketing strategy and customs fees. Most Chinese luxury goods consumers opt to go abroad or use overseas purchase agents, leaving many luxury stores in China, including Chanel, often empty.
Industry insiders believe its price adjustment plan is a strong signal that the new market strategy especially the price strategy might change further here in China.
As possibly more luxury brands may follow suit to adjust their marketing strategies, Chinese shoppers may be able to buy fair priced luxury products without going abroad.
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