Louis Vuitton raises prices again, but only in South Korea – how fashion brands are cashing in as Covid-19 travel restrictions drive luxury spending at home

Jan 14 , 2021

Louis Vuitton has just announced further price increases for its bestselling items in South Korea, after two increases in 2020. Photo: Reuters

Prices for Pochette Accessories and Mini Pochette Accessories bags go up by more than 20 per cent, but only in South Korea – meanwhile Hermès also raised price for 2021, but across the world

Luxury goods company Louis Vuitton has raised prices for its products in South Korea – again – just eight months after the last increase.

And unlike other luxury brands like Chanel or Hermès that adjust prices simultaneously across all of their global stores, Louis Vuitton has previously been known to increase prices only in Korea.

Frank Gehry-designed Louis Vuitton store in Seoul, South Korea. Photo: handout

Perhaps unsurprisingly, the increased prices mainly affected local bestsellers. The price of the brand’s small handbag Pochette Accessories, in particular, was hiked up by 25.6 per cent to the equivalent of US$900 from US$710. The price for the smaller version, the Mini Pochette Accessories increased by 22 per cent from US$375 to US$460.

Monogrammed Pochette Accessories from Louis Vuitton. Photo: handout

“It is exploiting people’s psychology of revenge shopping by increasing prices for somewhat cheaper items, which are less of a burden for customers to purchase,” an industry source said.

Due to travel bans driven by the Covid-19 pandemic, many people have been spending more of their disposable income on luxury items rather than on holidays or other common purchases.

As sales for luxury products have soared at local department stores, fashion houses have decided to jump on the opportunity for extra revenue.