According to reports, luxury fashion brand Louis Vuitton is set to raise its prices in China by up to 20%. This move comes as no surprise to Chinese consumers who have been facing repeated price increases from major fashion houses since the start of the Covid-19 pandemic. Chanel initiated a round of price hikes in its jewelry and watch segment in November, followed by Rolex in January in the American and British markets.
Brands justify these price increases by citing factors such as international pricing balance, margin preservation, compensation for inflation-related cost increases, and the need to maintain rarity. Louis Vuitton had already increased its prices in various areas and countries in January 2022, and it plans to continue these operations this year.
The financial results of luxury players in China have been impacted by the country’s sanitary restrictions. Therefore, Louis Vuitton aims to offset previous losses and boost revenue by increasing prices in the country. Users of the Chinese social network Xiaohongshu were already anticipating a price increase of 8% to 20% from mid-February, according to reports.
In France, certain Louis Vuitton leather goods are expected to see price hikes of around 3% to 7%, as reported by premium news site PurseBop. These price increases coincide with the restructuring of the fashion house, both in terms of governance and the creative studio. In early 2023, Louis Vuitton welcomed Pietro Beccari as CEO and Pharrell Williams as creative director.
Overall, the luxury fashion industry is experiencing a trend of increasing prices due to various factors. Links to relevant articles on luxury pricing trends and the impact of the pandemic on the industry can be found here:
1. Business of Fashion – Should We Fear the Return of High Fashion to Price Hikes?
2. FashionUnited – Gen Z to Drive Luxury Price Increases to Double-Digit Growth Rate
