Unlike consumer goods, which are priced on a cost basis, luxury brands typically set retail prices in three different regions, Europe, the United States and Asia according to different market expectations. In Europe, where France and Italy are the main places of origin, luxury prices are often the lowest. When European brands enter the U.S. market, they typically raise prices only slightly, as the consumer psychology for luxury goods has matured there. Luxury brands are the most expensive in Asia.
Consumers in the Asian market have high expectations of luxury brands best explains the phenomenon of luxury brands pricing the most in the Asian market.