Hong Kong shoppers flock to Chanel stores as it slashes prices due to falling euro
Fashion chain cuts prices in Hong Kong by 20pc as the euro weakens against other currencies
Shoppers and tourists flocked to Chanel stores in Hong Kong on Friday as the luxury brand slashed prices of classic bags by almost 20 per cent.
About 80 people lined up outside the French fashion house’s shop on Canton Road in Tsim Sha Tsui at about 3pm, after the brand announced plans to align prices worldwide that will see them cut in Hong Kong and mainland China and raised in Europe as the euro falls against the dollar and other currencies.
Chanel began cutting prices early in Hong Kong yesterday after announcing it would realign prices from April 8 on three of its most well-known handbags – the 11.12, the 2.55 and the Boy bag. A classic Chanel flap bag was available for about HK$34,000 today, down from HK$43,200, while a small Boy bag cost HK$29,700, down from HK$37,000.
“This measure is intended to reduce price differentials across countries, which have widened considerably further due to the recent depreciation of the euro,” Chanel said.
The move will also help Chanel fight against “parallel resale markets that are facilitated by price differences and hurt the business, the image and exclusive character of the Chanel brand,” it added.
Local Grace Lam, who joined the queue after lunch, said she had never heard of Chanel cutting prices over the past few decades.
She was wearing a Chanel bag that she bought 20 years ago. “They are very durable,” she said.
A tourist from Shenzhen said she has thought about buying branded bags in Europe.
“But if prices are the same in Hong Kong, I would prefer to buy them here,” she said.
Still, she saw style as more important than price, saying she would only buy items which she liked and not just because they were discounted.
Chanel is the world’s second-biggest luxury brand behind LVMH’s Louis Vuitton.