Shopping rush at Chanel stores after price cut

Stores of French fashion house Chanel in Beijing, Shanghai and Hong Kong have become crowded with customers following the dropped prices of its products. One of the Chanel stores in Shanghai was so crowded that the store had to implement a limit on the number of customers.

China has become one of the major luxury consuming countries in the world. However, the prices of luxury brands have been much higher than other parts of the world due to their marketing strategy and high customs fees in China. As a result, most Chinese luxury goods consumers choose to go abroad or use overseas purchase agents, leaving many luxury stores in China, including Chanel, often empty.

To change this situation, Chanel headquarters announced earlier that it will initiate a price adjustment plan in its global market starting from April 8 this year.Many Chanel specialty stores on the Chinese mainland have already started slashing the prices of its products before the date. The price of one of its classic handbags had a reduction of more than 20 percent to as much as 10,000 yuan.

Chanel has been the benchmark of the luxury industry in the world. Industry insiders believe its price adjustment plan is a strong signal that the new market strategy especially the price strategy might change further here in China.

With Chanel and possibly more ensuing luxury brands' new market plans, Chinese shoppers may be able to buy fair priced luxury products without going abroad.