Chinese people line up to buy branded goods because the euro has depreciated

Avatar of Nick John By Nick John Dec15,2023 #Chinese #depreciated
Chinese people line up to buy branded goods because the euro has depreciated 2
Chinese people line up to buy branded goods because the euro has depreciated 2

This week, Chanel and Swiss luxury watchmaker TAG Heuer said they would adjust prices worldwide due to currency fluctuations.

`The price difference is too large and will cause Chinese consumers to switch to buying goods abroad, perhaps by traveling or through import agents. Famous brands do not want this at all,`

Chinese people line up in front of a Chanel store in Shanghai.

The euro’s long-term devaluation has caused Asian customers to flock to Europe to buy branded goods.

The euro has fallen 24% against the USD in the past 12 months.

Meanwhile, the US Federal Reserve is planning to increase interest rates, pushing up the price of the USD.

Chanel said it will expand price adjustments worldwide from April 8.

TAG Heuer, part of LVMH Moet Hennessy Vuitton, also announced it would reduce prices worldwide due to the sharp increase in the Swiss franc.

`Imagine a currency fluctuates very strongly but you don’t adjust prices in time. If prices in other countries are 10-20% lower, customers will flock abroad. Meanwhile, domestic stores

The moves of Chanel and TAG Heuer will put pressure on other brands to reduce prices, especially on handbags and watches, said Rahul Sharma – CEO of investment company Neev Capital.

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