Affected by the financial crisis, Mexico City’s luxury goods market has shown a cooling trend recently.
President Masaryk Avenue in the Polanco area of Mexico City is a famous shopping street gathering the world’s top luxury goods. It is known as Mexico’s “New York’s Fifth Avenue”. Although the discount season at the beginning of the year has passed, some merchants still posted promotional advertisements. Even international luxury brands such as Don Conal, Escada, Valentino, Tiffany, and Chanel, which rarely discounted in the past, have reduced their prices to varying degrees. , some discounts are even as low as 70%.
In a famous store called Fratinna, a piece of women’s clothing priced at 60,000 pesos was sold for only 10,000 pesos (1 US dollar = 15.34 Mexican pesos). The merchant also issued a 6-month credit card Installment payment zero interest promotion advertisement.
Some merchants said that although luxury goods have loyal fans, there has been a significant decrease in customers in recent times. In order to maintain the uniqueness of the luxury goods market, merchants are reluctant to indicate discounts on labels, but some products are secretly reduced in price.
Despite this, not all businesses are willing to give up profits to withdraw funds. The person in charge of the Hermès store said that in order to maintain its brand image and the uniqueness of its products, they would rather have a backlog of certain products than sell them at a reduced price.
