Louis Vuitton, the world’s biggest luxury brand, is raising prices globally on February 16 as a result of increased manufacturing and transportation costs, a spokeswoman in China for LVMH, the French luxury goods company that owns the brand, has said.
Louis Vuitton is one of the first big labels in the industry to hike prices widely in 2022 to protect its margins as costs soar.The price increases will affect Louis Vuitton stores worldwide and cover leather goods, fashion accessories and perfumes, the spokeswoman said on February 15. She did not give further details on the scale of the rises beyond saying that they would vary depending on the product.
“The price adjustment takes into account changes in production costs, raw materials, transportation as well as inflation,” the label said in a statement.
Some bloggers on Chinese social media said the price of some models of handbags such as Capucines and Neverfull, now priced at 46,500 yuan (US$7,300) and 12,000 yuan respectively, would rise by 20 per cent or more in China, without citing sources.
PurseBop, a website tracking the luxury market, cited speculation that the increase would be between around 4 per cent on the lower end and 15-18 per cent on average on the higher end.
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Presenting record 2021 sales and profits for the fashion and leather goods division, which is led by Vuitton and Dior, LVMH’s billionaire boss Bernard Arnault said in January the group had enough wiggle room to increase prices in an inflationary environment but would have to be “reasonable”.
Throughout the coronavirus pandemic, luxury goods companies have been taking advantage of surging demand for high-end fashion and accessories to push their brands even more upmarket.
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