Hong Kong-listed Prada joins luxury brands in lowering prices in China
- Prada, Gucci and Louis Vuitton cut prices by 3 per cent to reflect lower VAT
Prada has joined other luxury brands in reducing prices to reflect lower value-added tax in China, but analysts and buyers are doubtful whether this is enough to boost sales in China amid a softening in consumption.
From April 1, Prada Group has reduced prices on all Prada and Miu Miu products sold through its directly operated stores in China and online by 3 per cent, the company said in an email on Wednesday evening.
China lowered its VAT for the manufacturing sector from 16 to 13 per cent effective from this month, as part of a broader effort to reinvigorate the slowing economy and bolster growth.
A Prada spokeswoman told the Post that the price cut would at least reduce the price gap between Europe and China.
A reasonable price gap between Europe and China will remain to cover the higher costs an European company incurs when selling its products in China, she said.
Rivals Gucci and Louis Vuitton have also lowered prices similarly.