Louis Vuitton, the top fashion brand owned by LVMH, will raise prices globally on Wednesday due to higher manufacturing and shipping costs, a spokesman in China told Reuters.
Louis Vuitton, the world’s largest luxury brand, will be one of the first big names in the industry to raise prices broadly this year to protect its profits as costs soar.
The price increase will affect Louis Vuitton stores around the world, covering leather goods, fashion accessories and fragrances, a spokesman said on Tuesday. She didn’t provide further details on the scale of the price increase, other than to say it would vary by product.
“The price adjustment takes into account changes in production costs, raw materials, transportation and inflation,” the brand said in a statement to Reuters.
Some bloggers on Chinese social media say some bags, such as Capucines and Neverfull, now priced at 46,500 yuan ($7,323) and 12,000 yuan ($1,890), will see prices in China rise by 20 percent or more, but No source was cited.
PurseBop, a website that tracks the luxury market, cites speculation that low-end products will rise by around 4%, with high-end products averaging 15-18%.
LVMH’s billionaire boss Bernard Arnault, who in January presented record 2021 sales and profits for the fashion and leather goods division led by LV and Dior, said the group had enough leeway to raise prices in an inflationary environment, but Must be “reasonable.”
Throughout the coronavirus pandemic, luxury companies have been taking advantage of a surge in demand for high-end fashion and accessories to push their brands higher.
Chanel raised prices on some of its bags three times last year, and the popular Classic Flap Bag, currently priced at $8,200, is now priced at $3,000, nearly 60 percent higher than it was before the 2019 pandemic.
