Louis Vuitton raises China prices by 25.5%
Higher end luxury leathergoods houses such as Hermès, Chanel, Louis Vuitton and Bottega Veneta raising their prices incrementally each year to maintain an air of exclusivity and, purportedly, manage market uncertainty and global currency fluctuations is nothing new.
However, local media have reported that the price of “entry-level” Louis Vuitton accessories, such as the popular Multi Pochette Accessoires bag, have increased by as much as 25.5% in China since July 2020. Usually, price rises are “controlled within the 15% range”, sources said.
Hermès, meanwhile, strategically increased prices in China by approximately 5% across certain product categories, in line with previous years.
Vice president of Shanghai-based luxury advisory group Yaok, Dr Zhou Ting, suggested to reporters that “this round” of price increases may be attributed to brands looking to Chinese luxury shoppers to help them “maximize profits, make up for losses caused by the pandemic and optimise their financial bottom line.”
Local media aired some entry-level luxury shoppers’ concerns over brands’ rising prices. “Too many and too drastic” adjustments of price will only “hurt the loyalty” of regular customers (who may instead switch to purchasing items of “more fixed value”) over time, they speculated.
Research suggests that the “maximum acceptable price difference” that most Chinese consumers are willing to pay when shopping in mainland China, as opposed to foreign markets, is around $450.
Image: Louis Vuitton.
