Chanel on Sale

Bad news for French tourism: Chanel is balancing their global prices.
Chanel to cut handbag prices in China by 20% from April 8
Starting April 8, French fashion house Chanel will cut sales prices on three of its prestigious handbags in China by 20%, Shanghai's China Business News reports.

This comes as part of Chanel's plan to "balance its global sales prices" to counter the weakened euro. Under the plan, Chanel will raise prices in Europe by 20% on handbags while slashing them in China, so as to narrow a growing price gap between Europe and China caused by the weakened euro.

The plan will undoubtedly send shock waves through the global luxury markets. But Chanel president Bruno Pavlosky said prices in China should not be higher than euro-based prices by more than 5%, as a lingering large price gap between Paris and China has cast a cloud over the brand image for Chanel bags.
This is being sold as a weak euro story, but no prices cuts for the U.S., where the U.S. dollar is up as much as the yuan this year. Also consider the other nations seeing price cuts: Hong Kong, China, Korea, Vietnam, Thailand and Russia.

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