Hong Kong luxury shops are slashing prices amid a falling euro.
French brand Chanel reduced prices on some handbags by as much as 20 percent on Tuesday, prompting rivals to follow suit, Ming Pao Daily reported Thursday.
Dior prices are down 10 percent on two of its flagship handbags. TAG Heuer, a Swiss watch brand in the LVMH group, cut prices by 13 percent.
On Wednesday, long queues were seen outside a Canton Road Chanel shop in Tsim Sha Tsui district where buyers had to wait an hour to enter, the report said.
A Hong Kong buyer, surnamed Chan, said he paid HK$34,000 (US$4,400) for a Classic Chanel handbag, saving HK$8,000.
A Chanel Classic flap bag is 20 percent cheaper at HK$38,000 while a Classic wallet is down nearly 20 percent to HK$5,800, the report said, citing a salesperson.
Some items on sale have sold out.
A Chanel spokesman said the company will again adjust prices from April 8 in line with the euro which has fallen to a 12-year low against the US dollar and is nearing parity.
TAG Heuer products are being marked down amid a rising Swiss franc, with prices in Switzerland, China and the United States now 8 percent lower.
Those in Hong Kong and Britain will be reduced by 13 percent but the company has no time frame for these price cuts.
Professor Leo Sin, who teaches marketing in the Chinese University of Hong Kong, said the euro has been falling for some time and it’s too late for some brands to cut prices in Hong Kong in order to keep pace with the early movers.
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