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| Wysłany: Pią 9:47, 24 Sty 2014 Temat postu: Tight times for Champs Elysees luxury |
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| Tight times for Champs Elysees luxury
For once, there is more to buying luxury goods in Paris than simply having the money. Anyone trying to buy more than two items at once from the Louis Vuitton megaboutique on the Champs Elysees these days faces disappointment. The restriction is the firm's attempt to keep bulk buyers at bay the people flying in from the Far East to take advantage of the fact that luxury goods carry a much higher price ticket in Japan or China than they do in the West. The difference is high enough to keep an informal trade in parallel imports thriving. The divergence in price of the same goods between different markets can be explained by the higher costs of doing business. Partly it is rental costs, import duties and the lack of storage space in cities like Tokyo which pushes the price up in North East Asia. But more importantly, the high level of local demand in such markets allows the luxury goods to be sold for a higher price. In fact, says Morgan Stanley retail specialist Claire Kent, the difference in price has actually fallen since the 1980s, when the same item was sometimes three times more expensive in Japan during that country's boom years. The price differential has decreased as local markets have become increasingly comparable in their standard of living and as transportation costs have fallen. Today, a 40% premium is the norm for most European luxury Goods in Asia. For example, the Port Tresor wallet which sells for about 75,000 yen ($700; 400) in the official Louis Vuitton store in Tokyo is 35% cheaper in the Champs Elysees Louis Vuitton store. To get around the 'two items per person' restriction, the buyers that fly over from China ask unsuspecting tourists to purchase the luxury goods on their behalf. Passing tourists are stopped a few metres down the street. If they are prepared to purchase an item, they are given euros in cash and sent into the store while the buyers wait eagerly outside. In return for their time the tourists that ask are given twenty euros for a coffee. Mostly, though, they seem to treat the deal as simply a favour. As the day continues and demand picks up, the restrictions are sometimes tightened to just a single item per person. The informal business that has sprung up from the difference in price must be profitable enough for the buyers to cover their airfare to Paris,[url=http://www.floware.fr]sac michael kors[/url], their stay, and their time spent on the street. The volume is certainly sufficient to have triggered the restrictions previously only brought in when stocks have been low. But aside from the restriction policy, there is little else that can be done, says Stephen King of the British Luxury Goods Council. "Parallel importation," he points out, "is not against the law in itself." A similar activity takes place across the French borders over to the UK with respect to alcohol. The British are known to buy huge qualities of alcohol in France because of the lower taxes and prices relative to England. But again, no severe action has been taken against these individual imports because the amount of alcohol that is brought over from France is small compared to the quantity of alcohol that is sold in England. So for the time being at least, it seems the direct impact of these luxury goods price differentials is in the form of disappointment. Genuine customers who wish to purchase more than one Louis Vuitton item perhaps for people who have placed orders with friends travelling to Paris are being turned away. |
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