French Luxury Goods Raise European Prices To Make Up For Losses In Chinese Market

Luxuries, France luxury group (LVMH)

Group LVMH recently said that the sales price of luxury brands such as Louis Weedon would be raised in Europe, in view of the shrinking sales volume and reduced profits in the Chinese market.

The global sales volume of luxury brands continued to rise, with sales of 6 billion 580 million euros in the first quarter, up 25% from the same period, but Asia is the slowest region for sales growth, especially in the Chinese market, showing signs of gradual decline, the report quoted the group as saying.

Reported that, due to factors such as exchange rate and luxury tax, Louis Weedon's price difference in China and France has risen to 45% - 47%, and more Chinese consumers choose to shop overseas. According to HSBC data, Asian tourists, including China, account for 35% - 60% of European luxury goods sales.

Barclays Capital analysts believe that

Only 3% of the sales price outside China can compensate for the loss of profits caused by overseas purchases by about 15% of Chinese consumers.

Reported that Lu Wei Ming Xuan group has not yet decided further.

According to the analysis of the structure scheme, the luxury consultancy organization believes that if the price increases in Europe are too large, it will affect the local demand in Europe, but gradual price adjustment is an inevitable trend.