Zhou believes the price cuts are in part

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by Xinhua Writers Li Huizi and Wang Di


BEIJING, March 20 (Xinhua) -- Shoppers came in droves to Chanel stores in Beijing this week to grab a bargain after the luxury brand announced price cuts across China.


Fashionists were shoulder to shoulder in Chanel stores in Shanghai while other luxury fashion stores nearby stood almost empty. The store at TaiKoo Hui mall in Guangzhou had to close its doors for a while to limit the press of shoppers.


The fashion house announced on Tuesday that it would cut prices in China while raising them in Europe in an attempt to reduce price differentials between countries Cheap Yohann Auvitu Jersey , counter the decline of the euro and discourage customers from buying fakes.


Before the adjustments, a Chanel handbag could be 40 percent more expensive in China than in France. The big price difference encouraged China's newly empowered middle class to go on shopping sprees in France, the heartland of the world luxury industry.


The price cuts started with Chanel's three best-known handbags, - the 2.55 Cheap Eric Gryba Jersey , 11.12 and the Boy Chanel purse - which only cost 5 percent more in China than in France since the realignment.


A 2.55 handbag is now available for about 32,000 yuan (5,200 U.S. dollars), down from 42 Cheap Anton Slepyshev Jersey ,000 yuan.


China is the third largest overseas market for the brand after the United States and Japan, but scalpers, who shuttle between the Chinese mainland and Europe, will soon find very little profit in the gray market.


Similar price cuts will slice through the whole Chanel range by the end of this year.


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According to a Fortune Character Institute report on the Chinese luxury industry in 2014, 46 percent of the world's luxury goods were consumed by Chinese people, but 76 percent of the spending took place abroad.


"This is really frustrating for luxury brands that have been in China for a decade and splurged out on fancy new stores," said Zhou Ting Cheap Zack Kassian Jersey , president of the Fortune Character Institute, adding that "many stores are already reduced to mere show rooms."


Although Chinese shoppers are the major force behind luxury consumption, the marketplace is not in China, which is not good for the development of the industry Cheap Jussi Jokinen Jersey , Zhou said. In the long run, the price cuts will boost the value of the brand globally.


"Chanel's idea is to bring those Chinese consumers back from overseas through the most effective method: dropping prices," she said.


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Zhou believes the price cuts are in part due to the ongoing anti-corruption campaign in China.


Gao, an official in north China's Shanxi Province Cheap Iiro Pakarinen Jersey , has .