Zhongxin Finance, February 19 (Reporter Xie Yiguan) LV has doubled prices again!
Shortly after the Spring Festival in the Year of the Tiger, the French luxury brand LV released the news of price increases, raising product prices worldwide on February 16.
LV announces price adjustment, with some styles raising prices by thousands of yuan
According to Reuters, LV's price hike covers leather goods, fashion accessories and fragrances.
"The price adjustment takes into account changes in production costs, raw materials, transportation and inflation," according to a statement obtained by Reuters.
Data map.
On the 17th, LV's official customer service confirmed the news to a reporter from Zhongxin Finance and Economics, "The price increase started on February 16th, and the current store product prices have been adjusted."
LV official website prices show that the price increase is not small.
For example, the price of the LV classic Capucines has been raised from 46,500 yuan to 52,000 yuan, an increase of 11.8%; the price of the Neverfull medium has risen from 12,000 yuan to 14,400 yuan, an increase of 20%.
According to media reports, in January, the famous luxury brand Chanel adjusted the prices of some styles on the basis of the price increase in November 2021; another luxury brand, Silin, adjusted prices twice in the past three months; on January 18, The price of the small Lady Dior handbag of luxury brand Dior rose from 36,000 to 41,000; French luxury brand Hermes also raised the price of some products recently.
In addition, Swiss watch brand Rolex increased its retail price by 3.4% on January 1, 2022.
Other watch brands, such as Hublot and Patek Philippe, have also begun to increase product prices.
In recent years, the price increase of luxury brands has become the norm
A reporter from China-News Finance found that in recent years, LV has raised product prices several times.
In 2020 alone, LV has experienced four price increases.
Not just LV, Bernstein analyst Luca Solka said Dior has been raising prices on its bags, for example, the Medium Lady Dior rose nearly $1,500 from 2019.
The price increase was particularly pronounced in China, where models such as the Medium Lady Dior grew at a compound annual growth rate of 20% between November 2019 and January 2022.
The analyst also said that since the Covid-19 pandemic, Chanel has raised the price of its classic models four times, or more than 50%.
For example, the price of Chanel's Medium Classic Flap bag in the United States has risen from $6,500 in 2020 to $8,800 in November 2021, a compound annual growth rate of 23%.
Data map.
In response, a Chanel spokesman said that the company regularly adjusts prices to take into account changes in production costs and raw materials, as well as fluctuations in exchange rates.
"The prices of certain raw materials are regularly rising, causing us to adjust commodity prices. These raw materials are inherently difficult to source because of our quality requirements," he said.
Rolex price rises more than gold, Dow in one year
In the face of thousands of yuan price increases from luxury brands, some netizens said, "It is better to buy a package than to buy a fund. A fund bought on February 14, 2021 will have a negative return of more than 30% on February 14 this year. Last month If you buy a new LV, the price will increase by 20%.”
From the data, it doesn't make sense.
At the end of 2021, Kaola Haigou once took stock of the "Ten "Wealth Management Packages" in 2021. Among them, CELINE ROMY's launch price increased by as much as 95% compared with the beginning of the year, and CHANEL CF's launch price at the beginning of the year was 51,500 yuan. In 2021, it has experienced two promotions. After the price, it reached 62,700 yuan, an increase of nearly 22%.
On a second-hand website, a reporter from Zhongxin Finance noticed that the resale price of the new small Chanel Classic Flap handbag exceeded 50,000 yuan, and the starting price of this bag in 2019 was only more than 30,000 yuan.
It is worth mentioning that according to foreign media reports, the price increase of Rolex has not only led the performance of the Dow Jones Industrial Average in the past year, but also far exceeded other investments such as gold and real estate (tracked by average house prices).
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