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

BEIJING, Feb 15 (Reuters) – Louis Vuitton, LVMH’s high trend model, will increase costs globally on Wednesday because of elevated manufacturing and transportation prices, a spokesperson for the French luxurious items firm in China informed Reuters.

Louis Vuitton, the world’s greatest luxurious model, will turn out to be one of many first massive labels within the business to hike costs broadly this yr to guard its margins as prices soar.

The worth will increase will have an effect on Louis Vuitton shops worldwide and canopy leather-based items, trend equipment and perfumes, the spokesperson mentioned on Tuesday. She didn’t give additional particulars on the size of the rises, past saying that they’d range relying on the product.

“The worth adjustment takes under consideration adjustments in manufacturing prices, uncooked supplies, transportation in addition to inflation,” the label mentioned in a press release given to Reuters.

Some bloggers on Chinese language social media mentioned the worth of some fashions of purses reminiscent of Capucines and Neverfull, now priced at 46,500 yuan ($7,323) and 12,000 yuan ($1,890) respectively, would rise by 20% or extra in China, with out citing sources.

PurseBop, an internet site monitoring the posh market, cited hypothesis that the rise can be between round 4% on the decrease finish and 15-18% on common on the upper finish.

Presenting document 2021 gross sales and income for the style and leather-based items division, which is led by Vuitton and Dior, LVMH’s billionaire boss Bernard Arnault mentioned in January the group had sufficient wiggle room to extend costs in an inflationary setting however must be “affordable.” learn extra

All through the coronavirus pandemic, luxurious items firms have been making the most of surging demand for high-end trend and equipment to push their manufacturers much more upmarket.

Chanel elevated costs on a few of its purses thrice final yr, with the favored Traditional Flap bag, at present promoting at $8,200, now costing $3,000 or practically 60% greater than earlier than the pandemic in 2019.

($1 = 6.3496 Chinese language yuan renminbi)

Reporting by Sophie Yu and Brenda Goh in Beijing, extra reporting by Mimosa Spencer in Paris; writing by Silvia Aloisi, ediitng by Alexander Smith

: The Thomson Reuters Trust Principles.