LV Cuts Prices in China as Gov't Seeks to Boost Luxury Buying
French luxury powerhouse Louis Vuitton has lowered its prices in mainland China following the government’s latest policy to reduce import duties on consumer goods, which officially came into effect on July 1, 2018.
In a brand statement on July 3, Louis Vuitton said,
“In consideration of the recent cuts on import duties and value-added tax, Louis Vuitton China has decided to mark down prices on a wide range of items to fully support the government’s efforts to reduce the price premium for luxury goods sold in China and overseas. Louis Vuitton China will continue to support the government’s efforts.”
The new prices have already been updated on Louis Vuitton's Chinese e-commerce site and in its boutique stores. It is estimated the brand has made prices cuts of between 300 yuan ($45) and 1,500 yuan ($226) on various products, making the average price reduction rate between three and five percent.
For buyers, this means the price of Louis Vuitton’s signature NÉONOÉ Monogram Canvas dropped to 11,800 yuan ($1,779) from 12,300 yuan ($1,855), and the brand’s NEVERFULL MM bag fell to 9,900 yuan ($1,493) from 10,400 yuan ($1,568) previously.
It remains to be seen if other luxury brands will follow Louis Vuitton’s lead and reduce their prices accordingly. Since 2015, Chanel, has adopted a price “harmonization” strategy, aiming to narrow the gap between domestic and foreign prices to encourage more mainland China purchases.