Pricing Luxury in China

Hello Readers,

We wanted to give you a faster, better look at industry data, which is why snippets of our articles will now be available here, on LinkedIn.

Starting off with one of the hottest topics in the industry now, pricing luxury brands in China.

Due to the significant price differences between European and international markets, American and Chinese tourists often make their way to Europe to take advantage of luxury prices. However, as restrictions loosen and borders open up, nearby, and domestic tourism is flourishing.

The question remains, how will this affect luxury tourism? What does it mean for luxury pricing strategies in China?

Retviews data has shown that there are significant price disparities between luxury leather goods in Europe, the UK, the US, and China. For instance, a Céline Cabas Triomphe bag is notably cheaper in France than in the US and China, with Chinese consumers paying $3 675 while shoppers in Paris pay 2 400€ ($2 616), making the bag 41% more expensive in China.

With luxury goods prices continuing to rise, brands must find ways to manage their pricing strategies on an international scale to avoid losing consumers.

The price of the Gucci Horsebit 1955 bag has increased significantly over the past year, rising twice since the beginning of 2022 to a current price of $2,725 (2,500€). Retviews’ data has shown that the Gucci Horsebit 1955 has exhibited a 14% YoY price increase in the European market, compared to a 15% YoY increase in the Chinese market.

Want to get an in-depth look at international pricing strategies in the luxury sector and see the state of luxury in the massive Chinese market? Read our full article here.

What is your take on international luxury pricing??