Burberry may cut prices in Asia and raise them in Europe
The British luxury house wants to narrow its global price gap
Burberry is the latest luxury brand to harmonise its European and Asian prices due to the weakness and fluctuations in the Euro, announcing that they may cut prices in Asia and simultaneously hike up prices in Europe. This move would mirror Chanel's, which saw a revision of its handbag prices in the two regions in March.
"We always maintain our price positioning by market relative to our immediate peers [brands like Louis Vuitton, Prada and Gucci]," Burberry chief financial officer Carol Fairweather told Business of Fashion. "Following that, as prices move, we would also move prices up or down in the same way."
According to Business of Fashion, Barclays analysts found that Burberry has the widest gaps between its European and Chinese pricing. Reuters points out that a price adjustment, if implemented, may discourage parallel trading, where Asian buyers purchase goods in Europe and re-sell them at home for a higher price.