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Louis Vuitton Price Increases in April 2023 – The Latest Status
Louis Vuitton Price Increases: The world is changing super fast, and the microcosm of designer luxury goods is no stranger to change, either. That’s why hearing about Louis Vuitton price increases doesn’t spell any kind of surprise. Instead, it’s expected at this point.
So how far has LVMH taken it this time? And is it still a good idea to invest in a Louis Vuitton bag, or should you go with your money elsewhere?
Let’s dive into the strange, wonderful world of designer bags and see if Louis Vuitton’s current price hikes make any sense.
Table of Contents
Why Is Louis Vuitton Going Up in Price?
As the best-selling luxury brand worldwide, Louis Vuitton has seen increasing demand in many markets after Covid restrictions were lifted. Add to this the rising cost of manufacturing, with supply chains being interrupted and artisan wages going up, and you’ve got yourself the perfect recipe for a price hike.
According to Jean-Jacques Guiony, the chief financial officer for LVMH, the parent company of Louis Vuitton, this is inevitable. Price increases are a necessary part of any luxury brand’s success, but they have to be done prudently.
Customers respond less favourably to multiple price increases within a short period, even if they’re incremental. A well-timed price increase when demand is relatively stable or high makes the most sense.
Louis Vuitton Price Increases: How Much Do Louis Vuitton Increase in Price?
Now that we know the reason behind the Louis Vuitton price increases, let’s look at how much more you’ll be paying for your favorite creations.
But first off, you can breathe a sigh of relief if you were eyeing a Ready to Wear collection item since those aren’t included in the price increase. The classic Neverfull tote collection is also off-limits for the price hike, and so is the Louis Vuitton x Yayoi Kusama collaboration.
- Coussin PM was €3,600 and is now €3,700 with a price increase of 2.7%
- Petite Malle was €4,350 and is now €4,500 with a price increase of 3.4%
- Alma PM was €1,490 and is now €1,550 with a price increase of 4%
- Twist MM was €3,600 and is now €3,700 with a price increase of 4.4%
- Multi Pochette was €1,960 and is now €2,050 with a price increase of 4.6%
- Speedy 25 was €1,130 and is now €1,200 with a price increase of 6.2%
- Capucines BB was €5,150 and is now €5,500 with a price increase of 6.8%
- Pochette Accessoires NM was €980 and is now €1,050 with a price increase of 7%
The current price increases for the European market aim to bring the prices closer to their counterparts in the United States market.
A similar price increase is also expected in China, where luxury designer bags are a huge status symbol with a wide open market. The predicted price hike takes effect on February 18, with a whopping 8–20% increase on all collections.
This comes after the lift of the rigorous lockdown Chinese authorities enforced during the Covid pandemic. Louis Vuitton, among other luxury designers, is expected to gain some traction after the restrictions are lifted.
As for the last few days before the price increases are implemented, it’s not pretty. People are lining up in hordes, and even camping outside of Louis Vuitton boutiques, to get an item before the new prices take effect.
Why Did Designer Bags Go Up in Price?
On the heels of a global pandemic and an uncertain political atmosphere, many people are looking to invest their hard-earned money to keep its value.
Moreover, during the Covid lockdowns, people stopped spending so much going out and socialising, so many consumers have disposable income they want to spend.
These factors led many new faces to the world of designer bags. People who’d never contemplated buying luxury items are considering it for the first time. They either view it as an investment, or as a means of self-care via retail therapy.
The outcome was the demand on the market for luxury goods recently skyrocketed. In true supply-and-demand fashion, the fashion industry is booming!
So, the logic of the brands after seeing this spike in demand goes like this; If peop
Is Louis Vuitton a Good Investment?
The answer to the question of whether Louis Vuitton is a good investment isn’t a straightforward yes or no. Louis Vuitton is a huge brand with thousands of products at varying quality and price points. So the answer lies within the details of the Louis Vuitton product you’re talking about.
That said, Louis Vuitton items are almost always good purchases. The brand holds itself to a certain production standard and the quality of the items usually exceeds cheaper brands. So if you’re looking for an item to use for the foreseeable future, Louis Vuitton is a good place to search!
Does Louis Vuitton Hold Its Value?
If you’re buying a Louis Vuitton branded item for the resale value, then you should keep in mind the following factors before making a purchase:
1. Design
Most people buy Louis Vuitton products to show off that they can afford Louis Vuitton products. There’s nothing wrong with that, but you should keep it in mind when choosing what to buy in order to resell.
You’ll mostly find LV logo-branded items do better on the resale market because they’re instantly recognizable as Louis Vuitton. Even the most gorgeous purse or accessory won’t fare as well if it features a plain leather design or no LV charm.
Another aspect of design that people are attracted to is the “mini” version of popular LV creations. These are usually made in smaller quantities, and so will have a higher appeal, like the Louis Vuitton Speedy Mini HL Handbag, which has an average value retention of 201%.
2. Material
The material makes a huge difference in how well an item survives wear and tear. That’s why vegan leather almost always does worse than patent leather, and some fabrics don’t even make it beyond one or two seasons of heavy wear.
Always go for the better material even if it costs you a little more because the item will usually be in better shape when you try to resell. Also, keep in mind that a second-hand buyer will be looking for a better-quality item to spend their money on.
3. Collection
Certain Louis Vuitton collections and collaborations bring in over 100% of their value on the resale market simply because of the scarcity factor. People want what other people can’t have, so they’ll pay more if they know they’re the only ones who own that specific bag.
For example, at 119% average value retention, the Nigo Keepall Bandoulière bag does pretty great as a resale item. And the Louis Vuitton x NBA Ball in Basket Bag with its cute design instantly dazzles at a whopping 147% average value retention!
Compare this with the classic Louis Vuitton Alma, which is made in large quantities. It has an average retention value of 67%. Not something you want to waste your hard-earned money on.
4. Condition
The condition of the item you’re reselling creates a huge gap between a quaint second-hand boutique and the local charity shop. Believe it or not, you can find designer items at thrift stores. However, those are usually worn and torn within an inch of their lives!
Taking care of your designer items for the purpose of reselling them doesn’t have to mean you never get to wear them or enjoy them. Just keep in mind that a mint-condition item will always bring in a lot more money than a “broken in” item with obvious wear.
5. Age
You might be thinking “Isn’t age related to condition?” Well, it is, but there’s an odd relationship that starts once an item is no longer old and is instead vintage.
An old Louis Vuitton bag is one that was made 3–4 years ago. A vintage Louis Vuitton bag was made 10 or more years ago and is in good condition, along with the other factors we mentioned earlier.
Do Louis Vuitton Bags Depreciate in Value?
Not all of them do. Well-made, limited-quantity Louis Vuitton bags can appreciate over time. Mass-made, less appealing LV creations probably do worse on the resale market.
All in all, Louis Vuitton bags have an average retention value of about 92% of their original price.
Why Does Louis Vuitton Burn Unsold Bags?
Well, before you jump to conclusions, not all unsold bags are destroyed. The company organises private sales events for its employees to salvage unsold stock at lower prices, eventually reaching selling them at cost.
If certain bags, shoes, or other items remain after several sales events, the company chooses to destroy them.
This is done because luxury brands rely on scarcity to maintain their value. If their items flood the market at lower prices, the company loses its appeal to a higher-end clientele. It’s not ideal as it’s a deliberate waste of perfectly good merchandise, but it makes sense within their business model.
Disclosure: We only recommend products we would use ourselves and all opinions expressed here are our own. This post may contain affiliate links that we may earn a small commission at no additional cost to you.
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