Most Overpriced Designer? | Page 167 | the Fashion Spot

Most Overpriced Designer?

That’s was it used to be until last year
Even at current exchange rates, I did a bit of research for an American friend and it’s far from standardized around the world.
The same Hermes shoes are at 900€=1,050 $ in France and currently at 1,300 $ in the US.
On the other hand , the very same reference of Cartier watch was $ 8,900 in the US and 9,100€ in Europe, but 8,900$ = 7,475 €, so it’s 1,625 € more expensive in the US.
Make it make sense.,
I only compared VCA px on a model I looked at it was the same. But it depends on brands. Hermes has always had this differential.
Also the fair comp for your friend should be
px in euro - VAT + US tariff at the border vs. px in USD + sales tax.
(I always report my purchases.)
so I went to Europe three times last year and didn't see anything worth buying over there. (I wasn't focused on hermes)
 
That’s was it used to be until last year
Even at current exchange rates, I did a bit of research for an American friend and it’s far from standardized around the world.
The same Hermes shoes are at 900€=1,050 $ in France and currently at 1,300 $ in the US.
On the other hand , the very same reference of Cartier watch was $ 8,900 in the US and 9,100€ in Europe, but 8,900$ = 7,475 €, so it’s 1,625 € more expensive in the US.
Make it make sense.,

Hard luxury and Chanel bags (maybe Hermes bags too but I don't buy them) have a global price harmonization strategy to address regionality and VAT refund shenanigans and maximums and minimums are more pegged to currency conversion now. Otherwise, it's still pretty much the same formula of European countries having the base price, ~10% more expensive in asia, and ~20% more expensive in USA excluding sales tax, VAT refunds, and customs declarations.

Chanel to Harmonize Global Prices​

March 17, 2015, 12:01am

PARIS — Positioning its brand for the future in an increasingly flat and digital world — and one racked by currency fluctuations — Chanel said Monday it plans to begin aligning the brand’s global pricing.

Effective April 8, the French fashion house is to harmonize sticker prices for three of its most iconic handbags, resulting in a sharp increase in Europe and a big drop in Asia.

For example, an 11.12 model, now priced at 3,550 euros in Europe, is to cost 4,260 euros come April 8, while the same bag in China, now 38,200 yuan, is to drop to about 30,000 yuan.

Meanwhile, the price of a Boy bag is to rise to 3,720 euros from 3,100 euros in Europe, while falling from 32,700 yuan to about 26,000 yuan. The 2.55 bag is the third classic model affected.

Ultimately, worldwide prices at the company are to never fluctuate more than 10 percent above or 10 percent below the global euro benchmark, said Bruno Pavlovsky, Chanel’s president of fashion, noting other products would be harmonized starting with the cruise 2015-16 fashion season.

If your friend is American, maybe advise them to ask around what the price is in Hawaii. It's an American state, but most luxury and fashion brands categorize it as part of the Asia-Pacific/Japanese market due to tourism so you're looking at about a ~10% cheaper list price (since 100 yen is like .54 euro right now) with half of the sales tax of most American cities, but you don't have to play the guessing game of will I have to pay the import tariff at customs upon reentry since it's a domestic flight/purchase.
 
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