SHANGHAI/PARIS (Reuters) – Louis Vuitton, a brand of the LVMH group, is expected to raise prices in China by up to 20%, as luxury brands bet on a strong rebound in Chinese demand after the easing of measures related to the COVID-19 pandemic in the country.
Last month, LVMH executives signaled limited price increases, mostly for leather goods, to narrow price gaps between the United States and Europe.
The biggest luxury brands have increased their prices in recent years, benefiting from a boom in demand, fueled by the savings made by consumers during the confinements linked to the COVID-19 pandemic.
On the Chinese social network Xiaohongshu, also known as the Little Red Book or RED, users were expecting price increases of between 8 and 20% at Louis Vuitton from February 18.
Predictions on price increases by users of the online trading platform generally turn out to be accurate, even if their sources of information are not always specified. They often quote fashion brand sellers.
Queues have reportedly started to form outside stores in Shanghai, according to conversations on social media, with shoppers looking to shop before prices change.
LVMH and Louis Vuitton did not immediately respond to a request for comment.
Louis Vuitton, one of whose most popular bags called Neverfull sells for the tidy sum of 1,500 euros, has raised its prices in France by around 3% to 7% this month, according to the PurseBop website which follows the luxury market.
(Reports by Brenda Goh, Sophie Yu and Mimosa Spencer, Dina Kartit)
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