GUESSING THE REASON: Armando Branchini, vice chairman of Fondazione Altagamma, is questioning price differentials in the luxury industry. Responding to a question following the presentation on Thursday of the Worldwide Luxury Markets Monitor 2015 Spring Update by Bain & Co. and Altagamma, he challenged the reasons behind the decision of “a renowned French firm, which tried to pass raising its prices in Europe and lowering them in China as a strategic change.” Branchini contended that “the real reason” for the decision was a slowdown in the brand’s sales in the region. “Two other important French groups said ‘not a chance.'” Branchini wondered why after “paying the price” of a strong euro for the past 10 years “now that we finally have a more balanced exchange rate, should we pay the price again? This is a bit paradoxical.”

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