The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
BEIJING, China — Apple and other consumer brands lowered prices for their products in China on Monday as a cut in the country's value-added tax (VAT) rate came into effect from April 1.
Price tags for products listed on Apple's China website were lowered on Monday morning, including a discount of up to 500 yuan ($74.44) for some of its latest iPhone models.
Suggested retail prices for brands including LVMH's Louis Vuitton and Kering's Gucci were also cut by around 3 percent, according to local media reports.
It follows announcements last month from car brands BMW and Mercedes-Benz, which said prices for several car models would drop following the tax changes.
ADVERTISEMENT
Apple declined to comment on the price cuts, while Kering did not immediately respond to requests for comment.
A spokeswoman for Louis Vuitton confirmed its China business adjusted prices on Friday and said the brand is "fully supportive of the Chinese government's ongoing efforts to narrow the price gap between China and overseas."
Beijing said in March that it would cut taxes and fees for all companies by nearly 2 trillion yuan in 2019, with the manufacturing, transportation and construction sectors set to benefit as it looks to stimulate a slowing economy.
The world's second-largest economy is growing at its weakest pace in almost three decades amid lower domestic demand and a trade war with the United States.
Several Chinese electronics retailers lowered prices for iPhones in January, discounting latest models by up to $118, after weaker-than-expected sales at the end of 2018.
By Cate Cadell; editors: Himani Sarkar and Muralikumar Anantharaman.
The company, under siege from Arkhouse Management Co. and Brigade Capital Management, doesn’t need the activists when it can be its own, writes Andrea Felsted.
As the German sportswear giant taps surging demand for its Samba and Gazelle sneakers, it’s also taking steps to spread its bets ahead of peak interest.
A profitable, multi-trillion dollar fashion industry populated with brands that generate minimal economic and environmental waste is within our reach, argues Lawrence Lenihan.
RFID technology has made self-checkout far more efficient than traditional scanning kiosks at retailers like Zara and Uniqlo, but the industry at large hesitates to fully embrace the innovation over concerns of theft and customer engagement.