On the 21st, it was confirmed that Louis Vuitton has raised the prices of some handbag products as the luxury goods industry implements price increases for the New Year.
According to industry sources, Louis Vuitton raised the prices of some handbag products on the 18th. For example, the CARRY PM and CARRY BB products made of monogram canvas increased by more than 13%, from 3.67 million won to 4.15 million won. The ALL IN BB product also rose about 8%, from its launch price of 3.56 million won to 3.85 million won. Louis Vuitton sells handbags in four models by size: BB, PM, MM, and GM.
Since the beginning of the year, major luxury brands such as Hermès, Rolex, and Gucci have been raising their prices across the board. The French luxury brand Chanel increased the prices of its flap bags with handle decorations on the 9th. Based on calfskin leather, the price of the mini bag rose from 8.24 million won to 8.53 million won, and the large size went from 9.83 million won to 10.17 million won.
Earlier, Hermès also raised prices of major products including bags and jewelry by an average of over 10% on the 3rd. The price of a 30-size Birkin bag made from Togo leather rose from 18.31 million won to 20.11 million won, crossing the 20 million won mark. The Everheracles wedding band in diamond-set rose gold increased by more than 15%, from 2.55 million won to 2.95 million won.
The price increases in the luxury goods sector at the start of the year are largely customary. The recent rise in the won-dollar exchange rate (the depreciation of the won) also seems to have played a part. However, some consumers point out that the frequent and significant price hikes are concerning.
Louis Vuitton is the flagship brand of the French luxury goods group LVMH Moët Hennessy Louis Vuitton, the world's largest luxury group. LVMH, which has been experiencing a downturn due to the economic recession in its largest market, China, recently regained its position as the number one company by market capitalization in Europe. As of the close on the 17th, the company's market capitalization was 345.3 billion euros (approximately 517 trillion won).
The anticipation for the recovery of the luxury goods market has also been bolstered by the inauguration of U.S. President Donald Trump. With projections that the Trump administration will cause a stronger dollar, the value of luxury corporations is also rising. There are expectations that U.S. consumers will enthusiastically embrace luxury goods, which have become relatively cheaper due to exchange rate effects.
A representative from the luxury goods industry noted, "It is essentially an annual event for each brand to raise prices at the start of the year," adding, "However, in the case of Louis Vuitton, the increase of over 10% will make consumers feel that the hike is significant."