As the luxury sector continues to be hard-hit by a big slowdown in spending within Asian markets, brands are increasingly having to revaluate their strategies in the region. For Valentino, that will mean lowering prices in Greater China and Southeast Asia, according to a release from the brand.
The move will align prices in Asia more closely with those of Europe, which has also seen a dip in shopping tourism, largely due to security threats following recent terrorist attacks. Prices in the European market will remain unchanged. Per a statement from the brand: "The strategy is aimed at continuously improving the image of the brand... (and) to protect the interests of clients and foreign direct investments made in retail recently."
Despite challenges, Valentino's parent company Mayhoola reports sales for the brand are up 9 percent to 256 million euros ($290 million) in the first three months of the year, from 234 million euros in the same period last year, with "double digit" growth in the U.S. and Japan. (So, don't hold your breath for any American price cuts.)
It's good news for Valentino, which could be listed on the stock market in Rome as early as the second half of 2016. It's also good news for Mayhoola, which could be setting itself up to become the next luxury power player after reportedly meeting with designer Hedi Slimane earlier this month and putting an offer out to buy Balmain.
This post has been updated to reflect information given in a release by Valentino.