Gucci to reduce retail prices in China

Gucci is widely expected to be reducing its retail prices in China following the decision by the Beijing government to cut tariffs on imported luxury goods.

According to Chinese publication Jing Daily, Gucci "would cut prices by an average of 5 percent in the country’s direct-to-consumer retail stores, according to an exclusive report by the Chinese fashion outlet LadyMax." Gucci is thought to "lower prices across all product categories," reports Italian news portal Piambianco News.

The move for price adjusting follows Louis Vuitton, one of the first companies to lower prices on its products sold in mainland China. The Chinese government aims to drive consumption in its home market, where there is ample appetite for luxury goods.

The strategy is likely to be followed by other luxury companies, including Kering portfolio brands Saint Laurent, Alexander McQueen and Balenciaga.

Last month the Beijing Finance Ministry announced it would lower taxes on imports for an average of 20.7 percent, with a view for the Chinese to purchase goods in their home country.

Photo credit:Gucci Beijing China World shopping mall