JLL: Lower luxury prices in China squeezes grey market operators
According to JLL’s Chen Lou, Chanel has reduced the prices of three handbags – the 2.55, the 11.12 and the Le Boy Chanel so that their prices in China are only 5% more than their prices in France. This may well squeeze out daigou operators who buy luxury goods overseas and sell them online for a profit (but below official retail prices) in China. On 21 May 2015, the Ministry of Finance announced a cut in import taxes on a variety of items, which will also reduce price differentials.
Source : 31 May 2015/JLL/Shanghai/RET