Handbag is most expensive in Brazil due to customs and shipping, according to new study
Handbags by French luxury brand Louis Vuitton are 16 percent more expensive in the UAE compared to France, where the fashion house is based, according to new research.
The monogrammed Speedy 30 bag is priced at $994 in the Gulf country compared to $854 in France, according to an analysis by Business of Fashion based on Louis Vuitton.com and local Louis Vuitton boutiques.
The brand’s online website does not reveal item prices, neither does it allow e-shopping. However, BoF figures reveal the further from Europe shoppers go, the pricier the bag becomes.
The UAE comes closely after the US in terms of prices, where the handbag is sold at a lower rate of $970, 13.5 percent more expensive than France.
Morocco and South Africa feature the lowest rates at $793 (-7 percent) and $850 respectively, followed by France’s neighbouring UK at $863 (1 percent).
The most expensive countries to buy the Louis Vuitton product are Brazil at $1,322 (55 percent), China at $1,138 (33 percent) and Russia at $1,093 (28 percent).
One of the main factors in pricing differences between regions are exchange rates and currency fluctuations, though local taxes also play a major role, particularly in countries such as China and Brazil, where imports valued up to $3,000 face a 60 percent tax.
Furthermore, some luxury brands are known to charge higher prices in markets where consumers have higher purchasing power. For example, Bottega Veneta’s classic intrecciato shoulder bag costs 18 percent more in Japan at $3,073 compared $2,600 in Europe. This applies mostly to brand’s signature bags which see a steady consumer demand. They can cost over 2.5 times more than their cost a decade ago.
Yet fashion houses such as Chanel harmonising their global pricing in 2015 (except in Brazil for shipping and custom reasons) where its quilted flap bag costs roughly the same ($4,800) in Paris, New York and Beijing.