Luxury brand Gucci has cut prices on several products, according to Bernstein analyst Luca Solca.
A small handbag from its Padlock collection, for example, is now selling for 2,450 euros in Paris, 30 percent below its price of 3,500 euros last summer.
Gucci’s sales strategy is not to cut prices, according to its owner, Kering. But price increases in recent years have made its products too expensive for some consumers, and the brand is now ready to act.
Louis Vuitton’s owner, LVMH, is not keen to do the same - cutting prices is considered taboo in the industry - but is not ruling it out. The brand’s sales fell 8 percent in the third quarter.
Management has “discussed possible drastic measures, such as price cuts,” according to LVMH CFO Cécile Cabanis.
That’s a slight difference in tone from her statement in connection with last year’s second-quarter report.
“We don't do segmented pricing - we're not Coca-Cola. We do it to make the best products,” she said at the time.
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