Louis Vuitton, Gucci and other consumer brands lowered prices for their products in China on Monday as a cut in the country's value-added tax (VAT) rate came into effect.
Suggested retail prices for brands including LVMH's Louis Vuitton and Kering's Gucci were cut by around 3 percent, according to local media reports.
Meanwhile, price tags for products listed on the Apple's China website were lowered on Monday morning, including a discount of up to 500 yuan (£57) for some of its latest iPhone models.
It follows announcements last month from car brands BMW AG and Mercedes-Benz, which said prices for several car models would drop following the tax changes.
Apple declined to comment on the price cuts, while LVMH and Kering did not immediately respond to requests for comment.
Beijing said in March that it would cut taxes and fees for all companies by nearly 2 trillion yuan in 2019, with the manufacturing, transportation and construction sectors set to benefit as it looks to stimulate a slowing economy.
The world's second-largest economy is growing at its weakest pace in almost three decades amid lower domestic demand and an ongoing trade war with the United States.
Several Chinese electronics retailers lowered prices for iPhones in January, discounting latest models by up to $118, after weaker-than-expected sales at end-2018.
FAQs
In order to attract Chinese consumers, who attach importance to and want to surpass class, LV actively publicises itself in China by cooperating with street brands and looking for young and influential celebrities.
Does Louis Vuitton outsource to China? ›
As luxury brands are aware of this, not all such brands have opted to outsource their production to Chinese CMs. For instance, Louis Vuitton (LV) insists on outsourcing production to reliable CMs in Italy.
Which brand is more expensive, Gucci or Louis Vuitton? ›
Louis Vuitton's basic line of canvas and leather bags typically costs between $1,100 and $6,000. A recent study revealed also that Louis Vuitton products are priced higher than Gucci's because the French brand uses even higher-level and more expensive materials.
What is Gucci's luxury strategy? ›
Gucci's marketing strategy is to create a sense of exclusivity around their products to appeal to high-end consumers who value luxury and quality. They achieve this through their use of high-end materials, attention to detail, and signature design elements, such as the double-G logo.
Why is Gucci popular in China? ›
Aside from the innovative and exquisite product design, Gucci's extraordinary branding and marketing practices should be considered as the most crucial success factor, making it to attract the attention of Chinese customers [7].
Are real Louis Vuitton bags made in China? ›
The Louis Vuitton leather goods collections are exclusively produced in our workshops located in France, Spain, Italy and the United States. Manufacturing our footwear and ready-to-wear collections takes place in France and Italy.
Which country buys the most Louis Vuitton? ›
Revenue share of the LVMH Group worldwide in 2023, by geographic region
| Characteristic | Revenue share |
|---|
| United States | 25% |
| Japan | 7% |
| Asia (excld. Japan) | 31% |
| Other markets | 12% |
2 more rowsJun 26, 2024
Key Takeaways. Louis Vuitton, Hermès, and Chanel have all implemented significant price increases in China, with some items seeing rises of over 20% in the past year, reflecting a broader trend among luxury brands to maintain exclusivity and profitability.
Are Gucci and Louis Vuitton owned by the same company? ›
No, Gucci is not owned by Louis Vuitton. Gucci is a part of Kering, another major luxury goods group. Louis Vuitton is under LVMH (Moët Hennessy Louis Vuitton). Both Kering and LVMH are separate entities and are competitors in the luxury goods market.
Where does Gucci rank in luxury brands? ›
Most Valuable Fashion Brands
| Brand | 2023 Brand Value $ |
|---|
| 2 | Louis Vuitton | $36.4 b |
| 3 | Chanel | $25.2 b |
| 4 | Hermes | $22.1 b |
| 5 | Gucci | $18.9 b |
96 more rowsHere's a look at the seven most expensive clothing brands in 2024 that epitomize luxury and prestige.
- Gucci. Overview. Gucci is the most expensive clothing brand in the world, and it has been making clothes since 1921 in Italy. ...
- Louis Vuitton. Overview. ...
- Chanel. Overview. ...
- HERMÈS. Overview. ...
- Prada. Overview. ...
- Balenciaga. Overview.
Crafting Exclusivity: The Core of LV's Approach
Every piece they make, every bag, every accessory, it tells a story. Exclusivity triggers a scarcity demand. A story of meticulous craftsmanship, of unique materials, of a product that's just for you. This isn't just marketing; it's art.
Why do Chinese people love Louis Vuitton? ›
He pointed out the key reasons that luxury brands such as LV, Dior and Hermes are doing well in China is because they excel in three areas: rational feature, such as price and rarity, emotional elements like brand allure, and rational aspect including prestige.
What is the Chinese trade strategy? ›
China's leaders emphasize the importance of increasing imports to facilitate both internal and external rebalancing. To stimulate imports and consumption, Beijing tested a series of policies, starting in the Shanghai Free Trade Zone in 2015, to facilitate cross-border e-commerce trade.
What is the one China strategy? ›
"One China" asserts that there is only one de jure Chinese nation despite the de facto division between the two rival governments in the aftermath of the Chinese Civil War.
