Luxury labels slash prices to attract wary shoppers

Plunging demand: A Louis Vuitton boutique in Shanghai. Luxury brands in China are offering bigger discounts for longer in an effort to stimulate sales. — Bloomberg

Some luxury labels are discounting their products to an unprecedented degree in China, reflecting a growing panic over unsold inventory as local consumers pull back on spending.

Starting this month, Chinese shoppers can snap up a small beige, crocodile-patterned version of Balenciaga’s iconic Hourglass handbag for US$1,947, or 35% off on the mainland’s dominant eCommerce platform, Alibaba Group Holding Ltd’s Tmall.