European Luxury Brands Slash Prices in Korea

European luxury brands are slashing prices in Korea due to persistently slow private consumption here and the weak euro.

Burberry, Chanel and Gucci have slashed prices by around five percent at duty-free shops, while Swiss watchmaker Tag Heuer also cut prices by up to 27 percent.

Tag Heuer watches now cost around 10 percent less on average.  "We've have adjusted the prices of major products, since the week euro has created differences in the prices of products sold around the world," a spokesman said.

Tag Heuer is a subsidiary of the LVMH Group, which also owns Louis Vuitton and Dior.

Duty-free shops are also offering discounts luxury labels. Lotte is selling around 150 popular brands, including Bally, Coach and Etro, at five to 15 percent discounts until the end of next month.

Shilla is offering discounts on 120 brands over the same period.

Industry watchers say the labels were motivated by slow private spending here over the past two years.

Chanel earlier cut the prices of most handbags by 15 to 20 percent.

Some consumers in Asia apparently travel to Europe to buy luxury goods there and sell them online here to make a profit from the price differences.