There are those raising prices in Asia. And there are those reducing them. For example, Louis Vuitton has decided to touch up price tags in Korea. Instead, Mulberry, which standardised them all over the world, will reduce them up to 18% in China. A price range that has only one goal: to increase proceeds. But the difference is evidently the charm and attractiveness that the products of the two brands arouse among Asian luxury consumers.
Mulberry reduces prices in China
An Iris leather bag by Mulberry today costs 18% less than a few weeks ago. It is the effect of the harmonisation of prices all over the world decided by the British brand. Mulberry’s hope is to increase online sales and exports, focusing on younger consumers. “Asia is definitely a focus, because the younger generations who buy luxury come from Asia and, mainly, from China”, said Mulberry CEO Thierry Andretta in an interview reported by the South China Morning Post. “The new price is even more important at the moment. Because it is unlikely that Chinese consumers will buy in Europe as in the past, but sales in China will certainly increase”. Andretta also mentioned the South Korean market, where young consumers check the price online 5 times before deciding where to buy.
Vuitton (and not only) in Korea
In that same South Korean market, according to pulsenews.co.kr, Bulgari raised prices in April, while Louis Vuitton and Tiffany raised them in May. Conversely, Hermès and Chanel did not adjust prices. According to some sources reported by the portal, Louis Vuitton Korea has increased the prices of some bags and accessories from 5 to 6% on average, while clothing prices have also gone up by 10%. It is the third increase in the last 7 months, after those in November 2019 and March 2020.
Takeing advantage of revenge spending
The Korea Times says that prices have only increased in Korea with the aim of exploiting revenge spending of local customers. Others justify the increase both in relation to an unfavourable exchange rate, and in wanting to pass on to end consumers part of the losses caused by the closure of Louis Vuitton production lines in France and Italy. The French fashion house did not provide any explanation or communicate whether the increase will also be applied in other countries.
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