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Louis Vuitton To Raise Product Price This Week In The Wake Of Rising Costs

Louis Vuitton To Raise Product Price This Week In The Wake Of Rising Costs
Starting on Wednesday, the worldwide fashion brand Louis Vuitton, which is owned by the LVMH group, will raise the price of its products in stores and online platforms around the world. According to reports citing a spokeswoman for the French luxury goods firm in China, the company's decision was spurred by increased manufacturing and transportation expenses.
With this price increase, Louis Vuitton, the world's largest luxury brand, will be the first major global fashion brand to raise prices across the board in 2022 in order to preserve profit margins in the face of growing manufacturing and transportation expenses.
According to sources, the price increase will affect the company's leather products, fashion accessories, and perfumes, which are available in all of its stores worldwide. However, the firm did not disclose specifics on the price hikes, instead stating that they will vary depending on product categories.
"The price adjustment takes into account changes in production costs, raw materials, transportation as well as inflation," the label said in a statement given to the news agency Reuters.
According to reports from China on Tuesday, some bloggers on Chinese social media discussed the brand's increased prices for some handbag models, such as Capucines and Neverfull, which are currently priced at 46,500 yuan ($7,323) and 12,000 yuan ($1,890), respectively, and claimed that the hike would be around 20per cent. The bloggers, on the other hand, did not provide any citations.
PurseBop, a website that tracks the worldwide luxury industry, reported that the price boost for Louis Vuitton products will likely be between roughly 4per cent on the lower end of the range and 15 to 18per cent on average on the higher end, based on speculation.
In an inflationary environment, the LVMH company had the flexibility to raise prices, but it would have to be "fair," said the firm's billionaire CEO Bernard Arnault in January, while presenting sales and earnings for the group's fashion and leather goods division, which includes Vuitton and Dior, for 2021.
During the Covid-19 pandemic, there was a boom in consumer demand for high-end clothes and accessories, which benefited luxury goods firms because the surge in demand and internet sales helped push their brands even higher upmarket. Last year, Chanel boosted the price of numerous purses by at least three times.
The price of the popular Classic Flap bag, which is currently $8,200, has been increased by around $3000, or roughly 60per cent, beyond the price set by the manufacturer before the epidemic in 2019.

Christopher J. Mitchell

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