May 20, 2024

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Luxury bargain hunters travel to Japan: double…

Luxury bargain hunters travel to Japan: double…

Bloomberg – Smart shoppers with a bargaining instinct are in the luxury segment They find an unbeatable opportunity in Japan.

The sharp decline in the value of the yen, combined with the fact that many high-end brands have not changed their prices to reflect this change, has provided a rare opportunity to obtain luxury goods at lower prices.

For examplea TAG Heuer Carrera chronograph watch can be purchased in Tokyo for 785,000 yen (US$5,087), once the 10% discount is applied, saving over US$1,350 compared to US$6,450 in New York.

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These prices attract buyers from all over the world to Japan, eager to resell luxury goods for a profit.

In addition, new items are not only less expensive, but you can also take advantage of deals at Various stores sell high quality used clothes.

Mrs. Dow Jonesan Instagram influencer famous for giving financial advice to her million followers, posted a video explaining how to do it.

All of this contributes to an unusual situation for Japan, the world's fourth-largest economy and long associated with high-end products and experiences.

While the Bank of Japan last month raised interest rates for the first time since 2007, a move that would normally support the currency, investors prefer to focus on monetary policy. The large gap that remains between the rates From Japan and the United States.

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The yen is currently trading near its lowest levels in 34 years against the dollar.

Read more: Japan ends era of negative interest rates with little evidence of further hikes

“Everyone said Japan was expensive, but I don't have the feeling it's expensive,” he said. chiara lambia, A 26-year-old student visits Berlin after a day of shopping in Tokyo. I had two Big bags of clothes and souvenirs through the bustling Ginza districtMany tourists took photographs in the windows of luxury brands.

The yen has fallen about 45% since before Covid-19, when the streets of Ginza were mainly known for hosting large groups of Chinese tourists who came to buy Japanese goods at duty-free prices. Nowadays, you are very likely to hear English, French or Spanish in the shopping district.

Luxury goods manufacturers They usually try to match prices around the world To avoid price arbitrage, so the discounts likely won't last long, according to the site Milton Pedraza CEO of The Luxury Institute, a New York-based consulting firm. but Higher prices in previous years may make some companies more hesitant To increase customer costs.

“Luxury brands need to be careful because they have already suffered significant price increases in 2022 and 2023, and with the exception of some highly sought-after brands like Hermès and Chanel, volumes are low,” he said.

Although manufacturers of luxury goods They can adapt some prices more regularly With further declines and limited collection, “there is an opportunity created by currency fluctuations to allow more savvy buyers to take advantage of the opportunity to go to certain markets to buy higher-priced notes,” said Deborah Aitken, global luxury goods analyst. Stocks in Bloomberg Intelligence.

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Read more: Hermès could overtake Vuitton as biggest luxury brand, according to Citi

Right now, some of the most popular luxury items are actively discounted. Here are some of them:

Luxury offers

Classic Chanel bag

The black lambskin bag retails for $10,277 in Japan versus $11,700 in the United States*Total savings: $1,423

Dior J'Adior slingback sandals

A pair of high-heeled shoes made in Christian Dior's Italian workshops sells for $860 in Japan, compared to $1,050 in the United States. Total savings: $190

Tag Heuer watch

The Carrera Chronograph model costs US$5,087 in Japan and US$6,450 in the United States. Total savings: $1,363

Love de Cartier bracelet

The yellow gold bracelet retails for $4,244 in Japan and $4,750 in the United States.Total savings: $506

Prada sunglasses

Glasses with gray lenses cost US$395 in Japan and US$530 in the United States. Total savings: $135

Gucci loafers

A pair of 50s-style Gucci leather boots are priced at $810 in Japan and $990 in the United States. Total savings: $180

Burberry coat

The Kensington Heritage mid-length style of Burberry's classic coat costs $2,106 in Japan and $2,590 in the United States. Total savings: $484

Hermes scarf

The Carré 90 version of the Hermès scarf made of blue silk fabric costs $460 in Japan and $550 in the United States. Total savings: $90

Montblanc pen

The gold-plated Montblanc pen costs $395 in Japan and $460 in the United States. Total savings: $65

*Prices are compared using tax-exempt prices in Japan, converted to US dollars, and pre-tax prices in the United States as of April 16 at 3:10 PM Tokyo time.

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Read more at bloomberg.com