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Valentino Cuts Prices in Asia to Boost Local Sales

Italian fashion house Valentino will cut its prices in Asia to bring them into line with European prices.
Source: Shutterstock
By
  • Reuters

MILAN, Italy — Italian fashion house Valentino said on Thursday it would cut its prices in Asia to bring them into line with European prices.

Consumers are increasingly inclined to compare prices online and travel to buy luxury goods where they are cheaper.

"Prices of products in Europe will remain unvaried, while those in Asia will be reduced," a statement said, referring to Greater China and South East Asia.

"The strategy is aimed at continuously improving the image of the brand ... (and) to protect the interests of clients and foreign direct investments made in retail recently."

The sector is under pressure from a sharp economic slowdown in China and recession in Russia, as well as plunging oil prices and security threats hurting tourist spending elsewhere.

The luxury brand, owned by Qatar's Mayhoola for Investments, said sales were up by over nine percent to €256 million ($290 million) in the first three months of the year, from €234 million in the same period last year.

It added that sales grew in all markets and in "double digit" percentages in the United States and Japan.

The Rome-based designer is considering a stock market listing, possibly in the second half of 2016.

By Giulia Segreti; editor: Ruth Pitchford.

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