Prices for Chanel and Louis Vuitton bags soared during the Covid-19 season

Louis Vuitton’s Multi Pochette bag increased by 46%, while Chanel increased the Classic Flap design price by 20-31% depending on the region.
According to the WWD Social isolation caused by the Covid-19 translation has resulted in an increase in the purchasing demand for branded goods of customers in the Chinese market and for luxury brands to have many product price increases.

“This is a result of the recent significant exchange rate fluctuations between the euro and the USD. Price adjustments are made in the countries that are needed and the products are guaranteed,” said the fashion house Chanel. Chanel sells for the same price worldwide. ” The company also added that the increase in product prices is seen as an act of trying to protect its profits from the outbreak of the Covid-19 epidemic. Many brands still raised product prices during the Covid-19 translation. Photo: WWD. Prices increased depending on items such as Louis Vuitton’s Pochette bag increased 46%, while Chanel’s Classic Flap accessory increased by 20-31% by region. In addition, the best-selling designs of the brands Prada Re-Editions, Lady Dior or Gucci Jackie also have 18-25% higher prices compared to 2020. On the other hand, Hermès only increased handbag prices by 3-6% during the period of social isolation due to the Covid-19 translation. Chinese influential figure – Mr. Bags – tracked the price changes of products from season to season and shared their views with WWD that brands are not going to push prices up at the same time. “They will push up prices for select bags and the next step remains stable in the long run. Then, raise prices for a new group of bags,” he said. For example, Dior has not changed the price of a saddle bag for more than a year and the Chanel 19 only increased by 5% compared to last year. Louis Vuitton’s Multi Pochette bag grew 46% within a year. Photo: Harper’s Bazaar. By 2021, price increases will happen more often. Gucci increased the price of Neo Vintage GG Supreme and Horsebit 1955 bags by more than 15% in early March. There is a high chance that many brands will continue to increase in price this year, analysts added. However, this strategy is only a temporary solution and will have a specific limit on the number of price increases when international tourism is back to normal, and brands are required to adjust again. “In the watch sector, brands want to increase prices and continue to develop diversified goods. But when the economic booms,” said Zuzanna Pusz, head of European luxury fashion research at UBS. In the end, many companies have to reconsider their product pricing as well as the structure “. According to the sheet Vogue , the price increase is an effective way to balance brand damage. However, how much and for how long is the question that firms must think about to make the right decision, putting the interests of consumers first. In the Chinese market, consumers do not pay much attention to the story of increasing product prices. Instead, they will line up for a few days at the store before the new price is introduced. From the point of view of the nation’s people, they are not only buying a bag, but also an investment in the future. Buyers were waiting in line at Louis Vuitton’s store. Photo: Reuters.