Louis Vuitton Will Hike Price For Its Products This Week Due To Rising Costs
Starting Wednesday, the price of products of the global fashion brand Louis Vuitton, owned by the LVMH group, will increase in the stores and online platforms throughout the globe. Reports quoting a French luxury goods company spokesperson in China said that rising costs of manufacturing and transportation prompted this company’s decision.
With this rise in prices, Louis Vuitton, the largest luxury brand in the world, will be the first major global brand in the fashion industry to hike prices of products widely in 2022 to conserve profit margins in the wake of rising manufacturing and transportation costs.
According to reports, the price hike affected the company’s leather goods, fashion accessories, and perfumes available in all of its stores globally. However, the company did not provide any details of the range of price hikes but said that the price rise would vary according to product categories.
“The price adjustment takes into account changes in production costs, raw materials, transportation as well as inflation,” the label said in a statement given to the news agency Reuters.
According to reports emerging from China on Tuesday, some bloggers on Chinese social media discussed increased prices of the brand for some models of handbags such as Capucines and Neverfull, which currently have a price of 46,500 yuan ($7,323) and 12,000 yuan ($1,890) respectively, and claimed that the hike for those products would be by about 20%. The bloggers, however, did not cite any sources.
Citing speculations, a website that keeps track of the global luxury market, PurseBop, claimed that the hike in prices of Louis Vuitton products would likely be between about 4% on the lower end of the spectrum and 15 to 18% on average on the higher end.
The LVMH group had enough wiggle room to raise prices in an inflationary context. Still, it would have to be “reasonable”, said the group’s billionaire boss Bernard Arnault in January while reporting the sales and profits for the fashion and leather goods division of the group for 2021, led by Vuitton and Dior.
There has been a surge in demand among consumers for high-end fashion and accessories during the Covid-19 pandemic, which benefitted luxury goods companies. The surge in demand and online sales helped push their brands even more upmarket.
Last year, the price of some of its handbags was hiked by Chanel at least three times. The popular Classic Flap Bag, which is currently priced at $8,200, was hiked by about $3000 or about 60% of the product’s price set by the company before the pandemic in 2019.