Luxury’s Latest Foe: 40% Discounts on Chinese Resale Sites

Luxury powerhouses like LVMH and Kering SA are facing a fast-growing foe in China: a grey market that sells brand-new, authenticated goods procured in other countries for discounts of up to 40 percent on the mainland.

Currency exchange fluctuations and Chinese shoppers’ growing price-consciousness has given new life to arbitrage in luxury goods, dominated by an e-commerce platform called Dewu. The value of Louis Vuitton goods sold over…