The big luxury brand price hike: Chanel, Louis Vuitton, Michael Kors and Ralph Lauren are dramatically raising prices after Covid-19 losses

Aug 6 , 2021

Louis Vuitton is one luxury fashion brand that’s hiking prices amid the pandemic. Photo: Reuters

The cost of Louis Vuitton’s bestselling Pochette Accessoires Monogram Canvas bag went up by 25 per cent while Ralph Lauren plans to add more jackets and coats

Luxury fashion brands are increasing prices and scaling back discounts to make up for lost sales in 2020 and offset rising supply chain costs

Fashion retailers are raising prices and scaling back discounts to make up for lost sales in 2020, and to offset rising supply chain costs.

According to the US Department of Labor’s June Consumer Price Index, apparel prices rose 4.9 per cent in June versus the year before – the largest jump in a decade. Michael Kors and Ralph Lauren are among those brands that have already raised prices.

The supply chain crisis is driving up the cost of transporting goods, leading to long delays. At the same time, retailers are trying to find workers in a tight labour market and are raising wages or offering perks to attract talent.

Some say they have no choice but to pass costs on to the consumer.

These are some of the brands raising prices:

Ralph Lauren

Ralph Lauren has been raising prices and cutting discounts since 2019. In its most recent quarter, its average selling prices were up 17 per cent, it said.

CEO Patrice Louvet told investors in an earnings call that the company was adding products that could be sold at higher price points, such as jackets and coats, and focusing on specific countries that can absorb price increases.

Louis Vuitton