Import duties have changed in China with an impact on Fashion & Luxury Goods Geo Pricing. Business of Fashion reported that luxury brands Louis Vuitton, Burberry, Gucci and Hermès reduced retail pricing in China by amounts ranging from 3% to 5%, depending on product category, to transfer to the final consumer the tax reduction. Other brands are said to follow.
Our intelligence platform confirmed Louis Vuitton price reduction in China staring July 2018. This has an impact to geo pricing strategies, reducing the gap from the retail price in Europe and China.