First Chanel, now Louis Vuitton – will prices of more luxury brands go up after losses during coronavirus lockdowns?
- Chanel is increasing prices on handbags and some other leather goods by up to 17 per cent; the price of a Louis Vuitton bag has risen by nearly 14 per cent
- Analysts say the strongest brands may be tempted to raise prices to make up for lost sales due to coronavirus lockdowns
Top luxury brands, including Chanel and Louis Vuitton, have increased prices of some of their most coveted products as they seek to make up for sales lost during weeks of coronavirus lockdowns.
High-end houses have all reported brisk business in South Korea and the key Chinese market, where shops began to reopen in March, partly offsetting a slump in Europe and the United States – where restrictions are only just starting to be lifted.
But with consultancy Bain estimating sales for the US$300 billion sector to fall by up to 35 per cent this year, bringing to a crushing halt a decade of spectacular growth, luxury groups are moving quickly to protect margins.
“These adjustments are made while ensuring that we avoid excessive price differentials between countries,” it said. The Korea Times reported price rises of 25 per cent on Chanel goods in South Korea.