Louis Vuitton, the renowned fashion brand and a part of the LVMH conglomerate, is set to raise prices in China by up to 20%. This decision comes as luxury labels expect a surge in consumer demand in China following the easing of Covid-19 lockdown measures.
Last year in February, Louis Vuitton initiated a series of price hikes, leading the way for other major players in the fashion industry. With consumers relying on their savings during the pandemic, high-end brands have been steadily increasing their prices in recent years. Hermes, famous for its sought-after Birkin bag, has already announced plans to raise prices by 5% to 10% this year due to rising costs and currency fluctuations.
Bloggers on China’s popular social media platform, Xiaohongshu, have predicted price increases ranging from 8% to 20% for Louis Vuitton starting from February 18. In fact, there have been reports of long queues forming outside stores in Shanghai, indicating that customers are eager to make purchases before the price hike goes into effect. While the sources of these predictions are not always specified, Xiaohongshu users, also known as Little Red Book, often have reliable information from sales associates at fashion labels.
Just last month, LVMH executives hinted at limited price increases, primarily for leather goods, in order to address price differences between the United States and Europe. LVMH CFO Jean-Jacques Guiony emphasized that these price hikes are implemented with caution, aiming to avoid multiple increases.
In France, Louis Vuitton recently raised prices by approximately 3% to 7%. For instance, the popular Neverfull tote bag now retails for 1,500 euros ($1,609.35). Certain models of the top handle Capucines bag and the Pochette Accessoires purse also experienced price increases, according to the luxury market tracking website PurseBop.
As of now, LVMH and Louis Vuitton have not responded to requests for comments regarding the price increase in China. However, it is evident that luxury brands are eager to capitalize on the recovering Chinese market and are strategically adjusting their prices to meet market demands.
Useful Links:
1. [](https://www.businessoffashion.com/articles/luxury/louis-vuitton-raises-prices-in-china-as-demand-rebounds) (Source: Business of Fashion)
2. [](https://www.globaltimes.cn/page/202102/1215596.shtml) (Source: Global Times)
Please note that the provided links are hypothetical, and it is important to find reliable and up-to-date sources for factual information.
