(Yicai Global) July 9 -- Following the deluxe Louis Vuitton and Hermes labels, Italian luxury brand Gucci has also reduced its prices in the mainland market after import tariff reductions by China.

The Italian design house will adjust the retail sales prices in China across the board, with the average drop of about 5 percent. All new arrivals sold at direct-sale outlets, including new and continuing styles, will be subject to price adjustments, except for commodities sold at discount store outlets, state media The Paper reported.

The price cut seeks to benefit consumers and comes in response to China slashing its import duties.

Louis Vuitton and Hermes had earlier dropped the retail price of certain of their products since July 1. Prices have been revised on LV's official website, with sticker reductions ranging from CNY300 to CNY1,500 (USD45 to USD226), and the Hermes brochure said that the price cuts of its branded products are between CNY100 and CNY500.

The new import tariff reduction plan announced by the country's customs tariff office which came into force on July 1 covers daily consumer goods, apparel and others. The average tariff on products such as garments and gym equipment fell from 16 percent to 7 percent, while that of skin care, hair products and other cosmetics as well as medical and healthcare products have slipped from 8.4 percent to 3 percent.

This is the second tariff cut China has introduced in the past halfyear following December's duty reduction.

Chinese are the leading buyers of global luxury products, but two-thirds of Chinese consumption occurs abroad.

After the mark-down of prices on the Chinese market by major plush product sellers, more lush labels may follow suit, thus inducing more Chinese  to shop back home, sector insiders predict.

Editor: Ben Armour