LV Will Not Follow Chanel To Adjust Its Selling Price.

In recent weeks, analysts and industry observers have raised questions about Louis Weedon's pricing strategy, because Chanel had raised its selling price of many iconic handbags products in the European market in April, and reduced the retail prices of these products in the Chinese market, aiming to solve the problem of widening prices of products in Eurasian markets due to the weakening of the euro.

It is reported that MOET & CHANDON Moet Hennessy Louis Vuitton, hereinafter referred to as "Louis Weedon", has recently said that the company does not plan to set a globally uniform price for its luxury products, thereby eliminating the speculation that the luxury giant will be able to raise the European price as well as China's selling price as Chanel, its French competitor Chanel, has been eliminated in the market.

Louis Weedon, chief financial officer of Jean-Jacques Guiony, said at a conference call: "we do not think that it is meaningful to establish a unified price structure", said Guiony.

At that time, Chanel's policy was regarded as a precursor, indicating the whole. Luxury goods The industry will also follow suit because the decline in the exchange rate of the euro against the US dollar and other major international currencies has led to a great difference in the price of luxury goods between Paris, Beijing and New York. Although the price of Chanel handbags has been relatively high in the European market, the current price differential is far beyond the normal level of history.

　　 Louis Vuitton According to the data released, the company's sales reached 8 billion 300 million euros (US $8 billion 800 million) in the first quarter, compared with 7 billion 200 million euros (US $7 billion 700 million) in the same period last year, an increase of 16%, a large part of which was due to the positive impact of exchange rate changes. Louis Weedon also said that the exchange rate movements were not included. Mergers and acquisitions And the impact of divestiture transactions, the company's sales in the first quarter increased by 3% compared with the same period last year.

The result of the weakening of the euro plus the higher import tariffs in China is that the price difference has become even greater for the mainland Chinese consumers. For the luxury industry, China is a crucial market because Chinese consumers like to buy luxury products, especially handbags, when traveling to Europe. In addition, such a price differential has prompted the rapid growth of the so-called "parallel market", that is, individual buyers resale their luxury goods purchased in overseas markets through Taobao and other online shopping websites.

But he said any decision on Louis Weedon's pricing policy must not be rushed. Speaking on the company's first quarter sales results, he said: "the impact of exchange rate changes will be eliminated by exchange rate changes."