Luxury houses raise prices

Last year shoppers at Louis Vuiton, Prada and other luxury houses in Europe may have noticed its prices were higher. Louis Vuitton's European customers reportedly saw an increase of 8 percent. This year Salvatore Ferragamo is expecting

its goods to be more expensive, with increases in costs, such as higher manufacturing rates and expansion, being passed on to the consumer.

Ferragamo is thought to have one of the most extensive, long-time retail networking in Asia, particularly in China. The company recently acquired an additional stake in its long time distribution partner in China, reaching a total of 75 percent of shares.

According to Pambianco, Ferragamo is increasing prices in Europe by as much as 11 percent. In China, prices of luxury goods are, on average, 20 percent more expensive than in Europe due to taxes.

Ferragamo is focussing on its expansion strategy with mono-brand store openings set for mainland China, Hong Kong and Taiwan. Indonesia and South Korea are also included in Ferragamo’s expansion plans.

Foreign shoppers in the UK and in Europe can purchase luxury products cheaper if they apply for a Global Refund. Residents outside of the EU can apply to have their VAT returned for purchases over 30 British pounds.

Generally, the procedure for obtaining a valid customs stamp is 3 months from the issuing month. A Tax Free Form must be stamped by a valid customs stamp and the rebate must be sent for by post.

Images: Ferragamo