Louis Vuitton Announces ‘Worldwide’ Price Increases Across Products

Following in the footsteps of Chanel, luxury brand Louis Vuitton has announced it will be raising the prices of its handbags and clothing beginning this week.

According to Forbes, this price hike was due to increased manufacturing costs and global inflation, and will extend to the fashion house’s entire collection of leather goods, accessories, and even fragrances worldwide.

“The price adjustment takes into account changes in production costs, raw materials, transportation as well as inflation,” the brand told Reuters in a statement.

Interestingly, the price tag change comes as LVMH—Louis Vuitton’s parent company—reported a record year in 2021 with a revenue of €64.2 billion (US$71.5 billion), a staggering 44% increase from 2020.

This could be due to the pandemic stalling the general population’s travel plans, allowing for more money to be spent on luxury goods and services instead of far-flung vacations.

The Fashion Law noted that Christian Dior, the second-largest brand under LVMH, could be raising its prices in the near future, too. 

In a note seen earlier this month, Bernstein analyst Luca Solca said that Dior’s recent popularity could result in “continuing increases in pricing to further establish the brand’s high-end credentials.” 

From 2019, the brand’s flagship handbags, such as the Medium Lady Dior, have already witnessed a hike of US$1,500—or an annual growth rate of 10% between then and now. 

Will the rising prices of luxury goods see the stores’ snaking lines disappear from view? Or will they just drive an even bigger demand for more exclusive purchases? Only time will tell.

[via Forbes and The Fashion Law, cover image via Phartisan | Dreamstime.com]