After Prada and Vuitton, Ferragamo increases prices in Europe
Salvatore Ferragamo has one of the most extensive, long time, retail networking in Asia, particularly China. As the company recently acquired an additional stake in its long time distribution partner in China, reaching a total of 75% of shares, Ferragamo looks at expanding its mono-brand store both in mainland China as well as Hong Kong and Taiwan. Indonesia and South Korea are also part of Ferragamo’s expansion plans.
To counter the exodus of luxury Asian consumers to Europe, Ferragamo is increasing prices in Europe by as much as 11%. In China, due to taxation, prices of luxury goods are, on average 20% more expensive than in Europe. There is also the tax free which allows Chinese to buy the same luxury products in Europe up to 30% cheaper. Last year, Prada implemented a price increase throughout Europe, as well as Vuitton which raised prices by 8%.