Did you know the American dollar is worth more against the euro than any other point over the past decade? But before you pack your bags for Paris, you may want to head to Hong Kong instead! Earlier this week Chanel said enough is enough, by announcing they would reduce prices on their more iconic bags in Hong Kong and China.
“The measure is intended to reduce price differentials across countries, which have widened considerably further to the recent depreciation of the euro,” the company said in a statement.
A classic Chanel flap bag now costs about 34,000 Hong Kong dollars (US$4,380), while a small Boy bag costs 29,700 Hong Kong dollars (US$3,830). That represents a savings of more than US$1,000 a bag, compared to last week’s retails. This new pricing structure not only offsets the depreciation of the euro, it also helps offset anti-corruption duty rates put in place by the Chinese government.
While prices will stay the same in the U.S., shoppers in Europe are soon out of luck. Chanel plans to increase prices by 20% in Europe on April 8th, in hopes to keep the Asia consumers consuming in Asia.
I think it’s working. This is the current scene across the street from my office in Tsim Sha Tsui.
Happy shopping Hong Kong!