Directly benefiting from China’s import tariffs cut, some European luxury brands have begun to cut the price of products sold in China, The Paper reported.
Louis Vuitton has already made a price cut on most of its products, ranging from 300 to 1,500 yuan. While Hermès made price reductions of 100 to 500 yuan, covering its belts, wallets, scarves and other accessories, as well as some women’s clothing.
But one staffer at a Hermès store said that the price cuts have had little impact on customer traffic, because consumers who buy luxury goods are actually less sensitive to price.
In recent years, the Chinese market has become a battlefield for global luxury brands, and LVMH, Dior and Cartier have adopted price reduction strategies to win over monied Chinese consumers.
In 2017, the luxury goods market in mainland China reached 142 billion yuan, a 20% rise from 2016, which was the largest increase since 2011.