Louis Vuitton set to raise price tags this week as costs climb

BEIJING: Louis Vuitton, LVMH’s top fashion brand, will raise prices globally on Wednesday (Feb 16) as a result of increased manufacturing and transportation costs, a spokesperson for the French luxury goods company in China told Reuters.

Louis Vuitton, the world’s biggest luxury brand, will become one of the first big labels in the industry to hike prices widely this year 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 spokesperson said on Tuesday. 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 given to Reuters.

Some bloggers on Chinese social media said the price tag on some models of handbags such as Capucines and Neverfull 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 per cent to 18 per cent on average on the higher end.

Throughout the COVID-19 pandemic, luxury goods companies have been taking advantage of surging demand for high-end fashion and accessories to push their brands even more upmarket.

Chanel increased prices on some of its handbags three times last year, with the popular Classic Flap bag now costing 60 per cent more than before the pandemic in 2019. 

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