According to a spokeswoman for the French luxury goods firm in China, Louis Vuitton, LVMH’s top fashion brand, would boost prices globally on Wednesday as a result of rising manufacturing and delivery costs.
The world’s most famous luxury label, Louis Vuitton, will be one of the first in the business to raise prices dramatically this year in order to safeguard its margins as costs rise.
According to a spokeswoman for Louis Vuitton, the price rises would affect stores globally and will apply to leather products, fashion accessories, and perfumes. She did not provide any other information on the magnitude of the increases, other than to note that they would vary based on the product.
In a statement to Reuters, the label added, “The price adjustment takes into account changes in production costs, raw ingredients, transportation, as well as inflation.”
Without identifying sources, some bloggers on Chinese social media claimed that the price of some handbag models, including Capucines and Neverfull, are now priced at 46,500 yuan ($7,323) and 12,000 yuan ($1,890), would climb by 20% or more in China.
According to PurseBop, a website that tracks the luxury sector, the increase will be between 4% and 15%-18% on average on the lower end and 15-18% on average on the higher end.
LVMH’s billionaire boss Bernard Arnault said in January that the group had enough wiggle room to increase prices in an inflationary environment but would have to be “reasonable,” as he presented record 2021 sales and profits for the fashion and leather goods division, which is led by Vuitton and Dior.
Throughout the coronavirus outbreak, luxury goods companies took advantage of increased demand for high-end clothing and accessories to push their names even farther upmarket.
Last year, Chanel raised the price of some of its handbags three times, with the iconic Classic Flap bag, which normally sells for $8,200, now costing $3,000, or roughly 60% more than before the 2019 epidemic.
