Louis Vuitton products price increase of Chinese tourists is difficult to Amoy cheap in Europe

The world's largest luxury goods group Moet Hennessy - Louis Vuitton Group (LVMH) and their counterparts recently raised the price to compensate for loss of business in the Chinese market and lower profit margins. LVMH and even the price of some products to disposable income can notafford the shrinking European level, such as the Lockit handbag prices increased to 2270 euros ($ 3,000).

LVMH and its peers to raise prices, intend to buy the cheaper half of the designer clothes and jewelry, Chinese tourists to Europe, has been difficult to Europe to buy cheap designer clothes and accessories. The CACheuvreux European head of equities Luka - solca, (Luca Solca) said: "luxury companies can not continue to maintain the current price difference, although this spread for the luxury goods industry for the past 20 years or 25 years is a 'pillar', but this spread can not then continue to be maintained and we expect the luxury enterprise will gradually narrow the spread, they are likely to improve the price of the product outside Asia to gradually narrow the spread. "

Market expectations this year, China will be the growth of the luxury goods industry contributions to third, but revenue growth weakened luxury corporate earnings there is a certain risk. Solca expected, luxury goods companies in China EBIT accounted for sales of luxury goods ratio of 40 %, while in Europe the ratio is 25%, this difference is mainly due to lower Chinese rent. Analyst at HSBC Holdings Beier Ji (Antoine Belge), tourists (mostly from China) for the European luxury goods sales contribution of 35-60% .