The pricey just got pricier! We’re talking about the news of Louis Vuitton raising prices in response to increased manufacturing costs and global inflation. Yes, that’s right! The fashion brand announced its decision this week while sending aficionados in a frenzy.
The move is mainly expected to affect Louis Vuitton’s leather goods, accessories, and fragrances around the world. It will also make the brand one of the first big labels in the industry to hike prices widely this year to account for better margins.
Commenting on it, the marquee, in a statement to Reuters, said, “The price adjustment takes into account changes in production costs, raw materials, transportation as well as inflation.” Noting on the hike of luxury goods prices, Mario Ortelli, managing director of Ortelli & Co., similarly remarked:
“You can bet on further price increases because the top-of-mind luxury brands have the ability to protect their margins, also in an inflationary environment. Pricing is a science, and brands perform price decisions, in order to keep a coherent price architecture among and within product categories and across geographies.”
Earlier in January, LVMH CEO Bernard Arnault had hinted at the price increases by stating, “Everyone is talking about inflation […] I don’t expect such an economic crisis. We have just gone through two very challenging years. I’d rather think that things will continue to improve, but we have an advantage over quite a few other groups, which is that we have a degree of flexibility on our prices. So in the face of inflation, we have the ways and means to react. And, I believe that demand will remain strong for our products.”
Chanel too increased prices on some of its handbags as many as three times last year, with Tag Heuer also expected to raise retail rates by April 2022. Well, who said luxury fashion was easy to fetch!