French fashion house Chanel said Tuesday it would increase prices in Europe on some of its prestigious handbags while slashing them in China in a bid to eliminate a growing price gap between Europe and Asia caused by the weakened euro.
Chanel said the price changes would take effect on April 8 and are required to eliminate a flourishing gray market for travelers who have been taking advantage of the vast price differential, buying handbags in Europe and reselling them in China.
Chanel said this measure is intended to reduce price differentials across countries, which have widened considerably further to the recent depreciation of the euro.