Luxury Labels Ditch Steep China Discounts to Rebuild Value (1)

Some luxury labels are pulling back from steep markdowns in China, seeking to rebuild an image of exclusivity to lure back wealthy shoppers whose spending remains less affected by economic slowdown.

None of the products sold by Kering SA’sBalenciaga on Tmall, China’s dominant e-commerce platform, were discounted in the first quarter of this year — or even during China’s biggest annual online shopping festival in November — according to data consultancy Re-Hub. That’s a marked contrast to the brand’s average discount of about 41% on Alibaba Group Holding Ltd’s-owned Tmall during the same periods the year before.

Versace, ...