When entering the global market, will the price increase or decrease for luxury products?

I think when a luxury brand enters a larger market, it is very likely for it to increase the prices for its luxury products for several reasons.

Firstly, usually, the supply of luxury products is relatively limited to expand for mass production, as it is constrained to expensive raw materials and available skilful labour forces. As the cost of production is relatively very expensive (though it is still incomparable with the final retail prices), it has greater risks to expand supply without having accurate demand information. Secondly, even when a luxury brand enters a larger market, for example, a luxury brand first enters the Chinese market, a small proportion of the entire population actually have the potential to become its customers. However, they do control the majority of the social wealth. Therefore, they can boost the demand. Under such situation, it is easy to attract more consumption without lowering prices. More importantly, although, in some markets, the demand for the luxury products increases significantly (as many companies become Asia will be the largest luxury market and have the biggest demand for wealth management), companies find that increasing prices is more profitable than increasing the supply proportionally in many occasions. Especially the luxury brands often have market power, because the luxury market is likely to be an oligopoly market.

It is not likely to decrease prices when a luxury company wants to increase its profits. Firstly, prices are not a typical feature that attracts people to buy luxury products. Secondly, when luxury brands have market power in their oligopoly markets, it is their interests to set prices above the market equilibrium price where the demand equals the supply.