share

Burberry may cut prices in Asia and raise them in Europe

The British luxury house wants to narrow its global price gap

By Andrea Tim | Published: 16 Apr 2015

Burberry cuts prices
Photo: Burberry

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.


Most Popular

Advertisement

MORE, MORE, MORE

LVMH 2017 finalists

LVMH 2017 finalists

Eight designers from all over the world have been selected for the prestigious young fashion designers award

Chanel's new watches

Chanel's new watches

The fashion house showcased the new Mademoiselle Chanel J12 alongside other gorgeous timepieces at Baselworld 2017

ELLE Instagram
Jon for Bulgari

Jon for Bulgari

Actor and model Jon Kortajarena is Bulgari's new global watch ambassador

Burch apologises

Burch apologises

'Tory Story: An American Road Trip', starring Poppy Delevingne, failed to include a woman of colour

Advertisement
#TFW Gucci

#TFW Gucci

The campaign celebrates the launch of the new Le Marché des Merveilles watch collection

ELLE Instagram