Gucci to reduce retail prices in China
Gucci is widely expected to be reducing its retail prices in China following the decision by the Beijing government to cut tariffs on imported luxury goods.
Gucci has confirmed to FashionUnited that it is adjusting its retail prices downwards across all categories in Mainland China as a result of the reduction in import duties on luxury goods, in order to pass on the benefit of this decision to its customers.
The percentage of reduction is in the average of 5 percent and will be active in all different channels effective beginning of July.
The move for price adjusting follows Louis Vuitton, one of the first companies to lower prices on its products sold in mainland China. The Chinese government aims to drive consumption in its home market, where there is ample appetite for luxury goods.
The strategy is likely to be followed by other luxury companies, including Kering portfolio brands Saint Laurent, Alexander McQueen and Balenciaga.
Last month the Beijing Finance Ministry announced it would lower taxes on imports for an average of 20.7 percent, with a view for the Chinese to purchase goods in their home country.
Photo credit:Gucci Beijing China World shopping mall