Balenciaga goods are going for 40% off in China as luxury brands conduct ‘the equivalent of hosting a public sale on Fifth Avenue' [Fortune]
Alibaba Group Holding Limited American Depositary Shares each representing eight Ordinary share (BABA)
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Source: Fortune
Starting this month, Chinese shoppers can snap up a small beige, crocodile-patterned version of Balenciaga's iconic Hourglass handbag for $1,947, or 35% off on the mainland's dominant e-commerce platform, Alibaba Group Holding Ltd.'s Tmall. That price is cheaper than what's listed on the brand's official websites globally and major luxury platforms including Farfetch. Balenciaga — part of French luxury giant Kering SA — averaged a 40% discount on sale items in three of the first four months of 2024, according to people familiar with the matter, who asked not to be identified discussing private data. The brand has also more than doubled its number of discounted products on Tmall, accounting for more than 10% of its inventory on the platform from January to April, the people said. During the same period last year, Balenciaga only discounted items in January, and at an average of roughly 30%, according to the people. It had no markdowns at all in the first four months of 2022, the
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