China, Hermès and Bottega Veneta raise prices (while others think about it)

China, Hermès and Bottega Veneta raise prices (while others think about it)

New year, new retouching of price tags. At least in China. Hermès has made an increase of about 5% of the tags, Bottega Veneta between 3% and 10%. But these are not the only brands that  raise their prices. The information shared by daigou, then, speaks of increases in sight also for Louis Vuitton (from January 7, but the label denies it), Celine (from Monday 11), and Chanel too will touch up the price tags of Classic Flap bags (in the photo) and in mid-January.

Raising the prices

A sales employee of the brand confirms the increases of Bottega Veneta to Jing Daily. At Louis Vuitton, however, they deny a new retouching. Chinese site ladymax has calculated how the price of the Classic Flap and 2.55 Medium bags, both of which are Chanel’s, has grown by 35% from May 2019 to today. Louis Vuitton made four increases last year: the price of the Speedy 25 bags grew by 18.4%. Until last December, a Dior Mini Lady bag cost 26.5% more than in 2019. And the price of Gucci, Prada, Salvatore Ferragamo bags has also increased.

What about Hermès

A separate chapter is reserved to Hermès which, as often happens, stands out in the luxury market. While all the other fashion houses have increased prices in 2020, the year of Covid-19, Hermès did not change its strategy of adjusting price tags (usually between 4 and 5%) only at the beginning of the year. The previous increase was in fact recorded on January 1, 2020.

There are those who like it (and those who don’t)

The price increases, of course, satisfy those who have already bought those same objects of desire. It also induces Chinese consumers, who today cannot travel abroad, to speed up the purchasing process, to avoid incurring in new price increases. And these are the positive aspects of China’s rising price policy. However, because of the queues forming in front of the luxury stores, brands also face the loss of frustrated consumers, who then complain on social media. Knowledgeable and well-informed consumers who are unwilling to spend any money on a purse. According to Ladymax: “Luxury brands should be more prepared for long-term challenges rather than relying on regular price increases”.

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