Chanel to reduce prices in China

Chanel SA, the French luxury fashion and accessories house, plans to cut its prices in China, while raising them in Europe, it said on Tuesday, which may encourage other luxury brands to follow suit.

The price adjustments, starting April 8, will cover a variety of items including three of its most popular handbags - the 11.12, 2.55 and Le Boy.

Considered the world's second-biggest luxury brand behind LVMH's Louis Vuitton, Chanel will progressively standardize prices across other products this year, but worldwide prices will not fluctuate more than 10 percent above or below the global euro benchmark, Bruno Pavlovsky, its president of fashion, told Reuters.