Louis Vuitton raising prices worldwide due to rising costs
Louis Vuitton, the French high-end luxury fashion house, revealed it has been affected by inflation, and the rising costs are forcing it to raise the prices of its goods worldwide. The Paris, France, headquartered company is implementing a price increase this week.
Louis Vuitton announced its plans to impose higher price tags on Wednesday, Feb. 16. The company’s spokesperson in China explained that this decision was made as transportation and manufacturing costs have been going up.
As per Reuters, as LVMH’s leading fashion brand move to hike its prices, it will be joining a number of major companies and labels in the fashion sector that have taken the same step to protect their businesses. Customers around the world can expect to see inflated price tags on the label’s perfume lines, fashion accessories, and leather goods.
Then again, the company did not share information on how much it will be adding to its current price tags. The only thing Louis Vuitton said is that the increase will depend on each product.
“The price adjustment takes into account changes in production costs, raw materials, transportation as well as inflation,” the luxury brand told Reuters.
It was reported that some Chinese customers shared on social media how much some of the LV bags are being sold after the price hikes. They said that one of the label’s bag models, Capucines, is now priced at 46,500 yuan or around $7,323. While the Neverfull is at 12,000 yuan or $1,890.
Louis Vuitton has performed well despite the COVID-19 crisis. In fact, it has recorded high sales as the demand for high-end fashion skyrocketed in the midst of the pandemic s shoppers spend most of their time at home. But then, it still needs to hike up its prices to fill margin gaps as prices of raw materials and so on are going up.
Meanwhile, The Fashion Law reported that another LVMH-owned label, Tag Heuer, is also increasing its prices. The luxury watch brand’s chief executive officer, Frédéric Arnault, said in an interview on Feb. 11 that they will be marking up prices by five to six percent on most of the watches in April.