Cheaper luxury goods could be on the way in Asia as wealthy Chinese look further afield
Chanel and Dior have already discounted items across the region as more wealthy Chinese customers choose to shop further afield
More luxury brands are considering cutting their prices in Asia after a slump in spending by wealthy customers in China, say analysts.
"In China, we believe price cuts by luxury brands will become the norm," said Zhou Ting, director of the Fortune Character Institute, a Shanghai-based research and consultancy group.
Sales of luxury goods on the mainland slipped by 1 per cent last year as more wealthy Chinese consumers chose to do their shopping abroad, with the strong yuan and favourable exchange rates making it easier to buy goods more cheaply overseas, according to a report by the US-based consultancy Bain & Company.
A government campaign against corrupt officials had also dented sales in China, the consultancy said.
Luxury brands hope that lower prices in Asia - including China - will lead Chinese consumers to shift their spending back to their home country, analysts said.
One leading brand, Chanel, made headlines in China last month after it lowered handbag prices by as much as 20 per cent in Asia.