Louis Vuitton prices in China have been reduced, the French luxury retailer saying it was responding to the government’s relaxing of duties on consumer goods.

The Chinese government has been enacting a number of changes over the past several years to lower import duties and increase domestic spending on consumer goods. Prior to the revisions, luxury goods were at one point selling at 68 per cent cheaper on average abroad than they were on the mainland.

The government wants people buying luxury goods to do so at home rather than abroad, where other economies benefit. Cutting Louis Vuitton prices in China might make consumers buy at home, rather than in Hong Kong, Macau, Japan or Europe, for example.

The situation encouraged an industry of shopping agents profiting from the price discrepancies across the border known as “daigou”.

A spokesperson for the luxury brand released a statement that read: “In consideration of the recent cuts on import duties and value-added tax, Louis Vuitton China has decided to mark down prices on a wide range of items to fully support the government’s efforts to reduce the price premium for luxury goods sold in China and overseas. Louis Vuitton China will continue to support the government’s efforts.”