Salvatore Ferragamo will raise its prices in Europe to capitalise on growing demand from Chinese tourists – who make up as much as 70 per cent of European luxury goods sales. High-end products are typically a third cheaper in the region than they are in China – where the country’s high taxes cause prices to soar.
The Italian heritage fashion label follows in the footsteps of luxury fashion conglomerate LVMH – who also plan to boost the cost of items most likely to be bought by travellers, such as handbags and shoes, The Financial Times reports.
"LVMH raised their prices by 8 per cent," said Ferragamo chief executive Michele Norsa. "We will have some low single-digit price increases."
Source: Vogue