Is it cheaper to buy luxury products in Europe than the USA?
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I’m
from the US and since most of the iconic luxury brands are from Paris,
was wondering if items are actually cheaper when purchased out there?
(Chanel, Louis Vuitton, Dior, YSL). Maybe from Vat taxes?
4 Answers
In
my experience, it is not. I've shopped (though never bought anything at
sticker price) at both department stores and branded stores in London,
Paris, Rome, Stockholm, Amsterdam, Venice, Prague, Berlin, Barcelona,
etc. Most of the major European cities. When adjusted for the currency
exchange, I've never known the price of luxury goods to be any cheaper.
Not even in cities like Prague where stuff is cheaper overall.
Luxury
items are always luxury. The best cigars are expensive, even in Cuba.
And the best caviar is expensive, even in Russia and Iran. There will
be marginal savings here and there due to reduced shipping/taxation/etc.
in various countries, but generally not enough to offset your travel
expenses.
That said, as a Parisian I can tell you that certain products – like Louis Vuitton bags – can cost a little bit less in France than in the US. (I know this because I have plenty of American friends who come hoping to get some shopping in!) especially with the "détaxe" benefit as a non-EU resident, which means the 20% VAT, which is built into all retail pricing here, is refunded with a little bit of paperwork. So overall, if you're looking at a bag that's $1000 in the US (and figure in ±10% sales tax) vs. a €1000 bag in France (and figure in exchange rate, minus tax) you're looking at $1100 (US) vs. $910 (France).
It doesn't always work out that advantageously, but with a bit of research you can sometimes get some good deals. Of course, if you buy enough stuff to really make it worth your while, you're going to run into customs limits...
That said, as a Parisian I can tell you that certain products – like Louis Vuitton bags – can cost a little bit less in France than in the US. (I know this because I have plenty of American friends who come hoping to get some shopping in!) especially with the "détaxe" benefit as a non-EU resident, which means the 20% VAT, which is built into all retail pricing here, is refunded with a little bit of paperwork. So overall, if you're looking at a bag that's $1000 in the US (and figure in ±10% sales tax) vs. a €1000 bag in France (and figure in exchange rate, minus tax) you're looking at $1100 (US) vs. $910 (France).
It doesn't always work out that advantageously, but with a bit of research you can sometimes get some good deals. Of course, if you buy enough stuff to really make it worth your while, you're going to run into customs limits...
But I really don't know why if the luxury brands are European. I usually don't buy those luxury brands. All I know is that a Michael Kors bag is about half the price in the US from prices in Europe.
And most other brands, whether American or not are cheaper in the US.
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