Price Reduction Measures Work Chanel Effectively Curb Luxury Second-Hand Pactions

French Classics

On Monday, it announced that it had won the first battle in the battle against the gray parallel market.

Despite the weak demand for luxury goods in the big environment, sales of brands in the Chinese market have increased.

Last year, Chanel narrowed the price gap between the US European market and the Asian market, effectively preventing second-hand pactions in the parallel gray market, including all kinds of purchases, Reuters reported.

BrunoPavlovsky, President of Chanel fashion department, said that the price reduction measures severely hit the gray parallel market, which resulted in double-digit growth in boutique sales in mainland China.

The Chanel team introduced the external lawyers' group to supervise the two tier market.

Despite the inhibition of the growth of parallel markets, Chanel is still not looking at the prospects for this year.

The company forecast that sales growth will slow this year, but will not disclose specific data.

In the past few months, terrorist attacks, slow economic growth and low oil prices have greatly weakened the purchasing power of buyers from Russia and the Middle East. The global tourism market has been hit hard, and the demand for luxury goods has dropped sharply.

Pavlosky said that the decline of the rouble led to a decline in the number of Russian tourists, and Brazil's economic recession depressed demand.

In April, LVMH, the world's largest luxury group, released its first quarter data. Sales of fashion and leather goods were flat; the first quarter sales growth of Herm luxury s group of France luxury goods group slowed down.

Chanel in the United States, Britain, Russia and other European markets and China, Japan and South Korea and other Asian markets sales growth stable.

Chinese and Russians have fewer overseas purchases, but the chances of buying luxury goods in China are high.

Therefore, Pavlosky believes that although Chanel growth is slowing down,

It is not obvious.

Chanel has just been displayed on Tuesday in the new early spring series (Cruisecollection) in Havana, the capital of Cuba, the first large one to be held since the 1959 Cuban revolution.

Show activity.

Chanel currently has fewer than 200 boutiques in the world, and Pavlosky has revealed that brands will not open stores in Cuba in a short time.