Ferragamo raises prices in Europe to level playing - footwearbiz: Lead

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Ferragamo raises prices in Europe to level playing field with China

18/01/2013
High-end Italian shoemaker Salvatore Ferragamo is to increase prices across Europe to counter the trend of Asians buying goods there at lower rates than in their home countries.

The Financial Times reported that the increases will be in the “low single digits”, following luxury group LVMH’s recent announcement that it will be putting prices up in Europe by 8% on items such as handbags and shoes for the same reason.

It is estimated that up to 70% of luxury goods sales in Europe are to Chinese tourists, as prices in China can be up to a third more, inflated by local taxes.

Ferragamo CEO Michele Norsa said he was confident about the state of the market going into the new year, as gifting in Asia is getting “more and more important”.

At the start of the year, the company said it will increase its stake in its joint ventures for distribution in the Chinese market from 50% to 75% over the course of 2013.

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