LV officially announced 16 price increase. Louis Vuitton, the world's largest luxury brand, officially announced that due to the increase in manufacturing and transportation costs, Louis Vuitton will raise prices worldwide on Wednesday, which is the fifth time that LV has raised prices in the past year. LV officially announced the price increase of 16.
LV officially announced the price increase of 16. On the evening of February 15, a spokesman for LVMH, a famous luxury goods group, said that due to the rising manufacturing and transportation costs, its luxury brand Louis Vuitton (LV) would start to increase its price worldwide on February 16.
The picture is taken from LV brand official website.
According to Reuters, the news was provided to LVMH by its China spokesman. The spokesman said that products under the LV brand, including leather products, accessories and perfumes, will face different price increases, but did not give specific price increase figures. According to the report, LV's move is likely to make it the first top luxury brand to raise prices on a large scale to maintain profits.
However, the fashion website "PurseBop" believes that the price increase of different categories of goods in LV this time is about 4%, and the category with the smallest increase is 15- 18%. According to many media reports, some luxury goods even experienced a great increase in demand during the epidemic, which led to the hot sale of products.
As early as the end of June of 1, bernard arnault, CEO of LVMH, mentioned at the press conference that there may be some price increase of LV in the near future, but he said that compared with the current inflation, the increase will be "within a reasonable level".
LV officially announced the price increase in June 16. On Tuesday, Louis Vuitton (LV), the world's largest luxury brand, officially announced that due to the increase in manufacturing and transportation costs, Louis Vuitton will raise prices worldwide on Wednesday, which is the fifth time that LV has raised prices in the past year.
During the epidemic, many luxury bags have experienced several rounds of price increases, and some LV bags have increased by 20% this round, which has made some buyers shout: this increase is "more fragrant than the fund".
The price of some styles of LV has increased by 20%.
A LV spokesperson said that the price increase will affect Louis Vuitton's stores around the world, including leather products, fashion accessories and perfumes, and the price increase will vary according to different products. "The price adjustment takes into account changes in production costs, raw materials, transportation and inflation," the company said in a price increase statement. "
During the COVID-19 epidemic, the price of LV handbags has been raised many times, which also made the sales and profits of LV fashion and leather products department set a record in 202 1. Bernard arnault, the boss of LVMH Group, said in the financial report that under the inflation environment, the Group has enough room to raise prices.
Judging from the official quotation, in this round of price increase, some classic LV styles have increased by 20%. According to media reports, the official prices of LV classic Capucines and Neverfull are 46,500 yuan and 1.2 million yuan respectively, but according to LV official website, the prices of these two handbags have risen to 52,000 yuan and 1.4 million yuan respectively, with the increase rates of 1.8% and 20% respectively.
Buying a bag to manage money is more "fragrant" than a fund.
Some netizens joked that several rounds of price increases made "buying a bag" no longer a "failure" behavior, but a special "financial management method".
On Sina Weibo, some users shouted, "LV's punctual zero-point price increase is comparable to wealth management products. This annual interest rate is more fragrant than buying a fund, and it is also profitable. "
In the little red book, there is also user feedback. Thousands of Neverfull handbags bought on October 20 16 have almost doubled now-LV official website shows that the current official price of Neverfull medium handbags is14,400 yuan.
In fact, during the whole COVID-19 epidemic, LV was not the only luxury company that raised prices.
For example, Chanel raised the price of some handbags three times last year. The classic flip bag now costs $8,200 in the United States, which is $3,000 or nearly 60% higher than before the outbreak of COVID-19.
Dior handbags have also been increasing in price. For example, since 20 19, the best-selling classic Lady Dior medium bag has increased its price by nearly 1500 USD (with a compound annual growth rate of 10%).
Bernstein, a consulting firm, said that Dior's price increase was particularly obvious in China. In China market, from 20 19 1 1 to 2022 1, the compound annual growth rate (CAGR) of some style bags, including Lady Dior medium bag, reached 20%.
LV officially announced the price increase 16.3. The rapid growth in the past two years has made the scale of the global luxury fashion industry reach a new high.
According to the report of Fashion Business Daily, the stock of global luxury fashion industry increased by 40% on average last year, outperforming the market for six consecutive years. The sales of luxury goods completely recovered to the pre-epidemic level in 20021year, mainly because consumers used to spend less on tourism and catering, and concentrated on buying luxury goods under the requirements of epidemic control.
However, in the opinion of analysts, the sustained high growth of luxury goods industry is not a completely positive signal at the moment when it is still full of uncertainty. The stagnation of international travel, supply chain problems and rising prices of materials and labor are always hidden dangers that cannot be ignored by major brands.
On the other hand, the persistence of the epidemic has caused major luxury fashion brands to switch between opening and closing in some areas. Some brands even decided to cancel the fashion show because of the epidemic and release it temporarily on the internet, which is also an unnecessary consumption for brands.
Another person in the industry pointed out that although the luxury consumption of the United States, China and South Korea has recovered to the level of 20 19, the major consumers of luxury goods in Europe and Japan were still depressed in the past. Facing the persistent epidemic and global economic headwinds, the prospects of luxury brands in 2022 are even bleaker than a year ago.
Bain Company also admitted in China Luxury Market Report 202 1 that the growth rate of luxury goods market in China slowed down from 48% in 2020 to 36% in 20021year, with the total amount approaching 47 1 billion RMB, and the growth rate will further slow down in the first half of 2022. Last year, in the month of 1 1, Goldman Sachs lowered its luxury goods sales growth forecast for 2022 from 13.5% to 9%.
Based on the above, Thomas Chauvet, head of luxury research at Citibank, pointed out in his latest report that luxury brands will continue their consistent price increase strategy this year to maintain the normal growth level of their performance, especially for luxury brands with relatively simple product structure like Moncler, the price increase may be as high as double-digit percentage.
LADYMAX, the official account of WeChat WeChat, also pointed out in an earlier report that in an ideal state, the investment of luxury brands in marketing will eventually turn into a brand premium. According to the intensive marketing output of luxury brands in the global market in the past two years, the price increase process will naturally accelerate as never before, and when the people who can afford the baseline products reach a certain threshold, it is a good time for luxury brands to raise prices.
Faced with the industry's concerns about global inflation, bernard arnault, CEO of LVMH, the world's largest luxury goods group, bluntly stated at the latest financial report meeting that LVMH's brands have enough room to make profits in an inflationary environment by raising prices and other measures, and stressed that any price increase must be reasonable.
Louis Vuitton, the core brand of the Group, has taken action. Recently, it announced in an internal mail that based on the overall planning of pricing strategy, the brand will adjust the prices of some commodities from February 16, with the range of about 10%, mainly targeting leather goods, fashion accessories and fragrance products, so as to adapt to the changes in the global business environment such as rising raw materials and production costs, increasing international logistics costs and inflation.
On June 5438+ 10 this year, Dior and Celine under LVMH also completed the first price increase this year. Among them, Celine raised the product price twice in just three months, and the price of entry-level handbags approached Louis Vuitton, which triggered a heated discussion among consumers.
Hermes, another head luxury brand, also completed its annual price increase in June 5438+ 10. The price of accessories such as scarves has increased by about 10%, and the price of popular handbags has also increased to 59,600 to 65,300 yuan. Bottega Veneta, Fendi, Cartier and other brands have also joined the ranks of regular price increases in the past two years, making up for the losses caused by the epidemic while enhancing the brand value.
It is worth noting that according to the latest report released by Morgan Stanley, the price gap between top luxury brands in Europe and China seems to have widened again in the past few months. The price difference between major brands such as Dior, Gucci and Louis Vuitton in China and Europe reaches 35% to 40%. Chanel is an exception. The price difference between Europe and China is only 12%.
Morgan Stanley believes that the main reason for the widening price gap in recent months is the exchange rate factor. The strength of RMB against Euro and other currencies makes the prices of some luxury brands in China nearly half higher than those in Europe. This figure does not include VAT refund.
Assuming that international travel restrictions are lifted, China consumers will buy a luxury brand handbag in Europe at the moment, and with the VAT rebate, the difference may even be as high as 60%. In order to prevent the price difference of luxury goods at home and abroad from weakening the purchasing intention of China consumers, Morgan Stanley expects Hermes, Louis Vuitton, Dior and other brands to focus on raising prices in the European market this year.
Chanel, which has increased by as much as 60% in the past three years, raised its price in the United States on June 5,438+10/9, involving Coco handles, 19 bags, chain wallets and Le Boy, with the range of about 10%.
To be sure, the price increase has become a mechanism for luxury brands to screen consumers and maintain the momentum of performance growth, and the logic behind it is not complicated. At the moment when the strong are stronger, what luxury brands need to grasp most is 10% rich people, and control the product pricing at a level that the middle class needs to make some efforts to get, which can also make luxury brands always take the initiative in this game of human desire.
According to Hurun Research Institute's "2022 Hurun Excellent Product-Brand Tendency Report of China High Net Worth People", Chanel replaced Apple as the most popular gift brand for men and women, followed by Louis Vuitton and Dior, and Bulgari became the most popular jewelry brand for high net worth people for four consecutive years.
As of press time, LVMH's share price rose by 1.42% to 7 16. 1 euro, with a market value of about 360.3 billion euros, once again returning to an all-time high. Kaiyun's share price also recorded an increase of 1.04%, and its market value returned to 80 billion euros to 80.7 billion euros. Hermes shares rose 2.05%, with a market value of about 0.05%.