Price of Chanel classic bags decrease dramatically in China, to less than 5% higher of that in Europe

According to Voice of China column in China National Radio, luxury brand Chanel will cut the price of 3 symbolic bags under its brand by around 20% since April 4th.
Chanel ChinaThe reporter learned that the price of some Chanel bags rose and some fell. Chanel announced its strategy to adjust the price of 3 symbolic bags: to increase the price of bags sold in Europe and at the same time cut their price in China by around 20%, which is never seen before. Judging from the current situation, the Chanel outlet in Hongkong and Shanghai have carried out price cut. It is said that the 3 bags Chanel company plans a price adjustment are 2.55, 11.12 and Boy, whose price in China ranges from 32,000 to 38,000. After the adjustment, consumers in China can pay 6000-8000 yuan less for these 3 types of bags. Boy, costing 32,000 yuan in China before, now values only 26,000 yuan. Conversely, Chanel will increase its price in Europe. The price of Boy used to be 3100 euro and now it is 3720 euro.
Chanel China 2016It is believed that the price adjustment only covers 3 types of bags, but they contribute to almost one third of Chanel business in Europe. Earlier, the exchange rate of Euro against RMB decreases by 23%, which means a 20% discount for shopping in Europe. This has greatly expanded the market of European purchasing representative of luxury and overseas online shopping. The brand director of Chanel also said that China is the third largest market of Chanel, after America and Japan. In the past, burdened with heavy tariffs, Chanel sold its product with a price about 40% higher in China than in Europe, resulting in the rife of rampant behavior of online purchasing representatives and fake produce selling. After the price reduction, the price of all the Chanel products in China, except Chanel fragrance, will be less than 5% higher than that in Europe.

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