The Japanese are known for their quirky, unique style and love for fashion, so it hardly seems justifiable that they are paying much more for luxury goods. Luxury goods are being sold to the Japanese for much higher prices than that of the US, or Europe. From MO Luxury’s experience in the past, the Japanese market would have had up to a 30% differential in terms of a higher pricing strategy, but now it is sitting at 50-60% for imported luxury items.
McKinsey & Co principle Brian Salsberg, stated of the traditional practice of Japanese luxury shopping “Some manufacturers choose to charge more for their products in Japan simply because they can. Historically, they have been able to get away with it, due to a relative lack of price sensitivity and transparency and a disproportionate focus on the quality of the item and the shopping experience over the price.” But now, the Japanese are slowing down on their luxury shopping, and are more aware of the price differences between countries.
It comes at no surprise that the Japanese are choosing to shop elsewhere when travelling, or via online stores. It is no longer justifiable for them to shop at marked up prices, when the average consumer has many more choices.
Image credit: luxuo.com
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