Louis Vuitton Price Increase: The world is changing fast, and the microcosm of designer luxury goods is no stranger to change. That’s why hearing about Louis Vuitton price increases doesn’t spell any 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 recent price hikes make any sense.
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 lifting Covid restrictions. 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 like Cartier’s are necessary for any luxury brand’s success, but they must be done prudently.
Customers respond less favorably to multiple price increases within a short period, even incremental ones. A well-timed price increase when demand is relatively stable or high makes the most sense.
Louis Vuitton Price Increase: How Much Does 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, as 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 giant status symbol with a broad 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. Among other luxury designers, Louis Vuitton 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 socializing, so many consumers have disposable income they want to pay.
These factors led to many new faces in the world of designer bags. People who’d never contemplated buying luxury items are considering it for the first time. They view it as an investment or 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!
Is Louis Vuitton a Good Investment?
The answer to whether Louis Vuitton is a good investment isn’t a straightforward yes or no. Louis Vuitton is a massive 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 discussing.
That said, Louis Vuitton items are almost always good purchases. The brand holds itself to a specific 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 an excellent 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. NThere’sothing is wrong with that, but you should remember when choosing what to buy 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 famous LV creations. These are usually made in smaller quantities and will be more appealing, like the Louis Vuitton Speedy Mini HL Handbag, with an average value retention of 201%.
2. Material
The material dramatically affects 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, remember that a second-hand buyer will be looking for a better-quality thing to spend their money on.
3. Collection
Specific Louis Vuitton collections and collaborations bring over 100% of their value to the resale market simply because of scarcity. 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, 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 your reselling item creates a massive gap between a quaint second-hand boutique and a 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 to resell them doesn’t have to mean you never get to wear them or enjoy them. Remember that a mint-condition thing will always bring in much more money than a “broken-in” item with noticeable wear.
5. Age
You might be thinking, “Isn’t age-related to condition?” Well, it is, but an odd relationship starts once an item is no longer old and is instead vintage.
An old Louis Vuitton bag was made 3–4 years ago. A vintage Louis Vuitton bag was completed ten or more years ago and is in good condition, along with the other factors we mentioned earlier.
Do Louis Vuitton Bags Depreciate?
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 92% of their original price.
Why Does Louis Vuitton Burn Unsold Bags?
Before you jump to conclusions, not all unsold bags are destroyed. The company organizes private sales events for its employees to salvage unsold stock at lower prices, eventually selling them at cost.
If certain bags, shoes, or other items remain after several sales events, the company destroys 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 excellent merchandise, but it makes sense within their business model.
Did Louis Vuitton Raise Prices?
According to sources, Louis Vuitton has raised its prices multiple times in the past few years. In February 2022, Louis Vuitton announced a price increase worldwide in response to increased manufacturing costs and global inflation. In 2021, Louis Vuitton also increased its prices, with some popular bags rising by as much as 33%. In 2022, Louis Vuitton raised its prices again, with some items rising by as much as 38%.
Why are Louis Vuitton bags so expensive now?
Louis Vuitton bags are expensive due to the brand’s reputation, exclusivity, and high-quality materials and production. The recent price increase in 2021 is due to factors such as inflation and supply chain disruptions.
Does Louis Vuitton have value?
Yes, Louis Vuitton has value. According to Forbes, Louis Vuitton is the world’s most valuable luxury brand, with a valuation of $39.3 billion.
Does Louis Vuitton put their bags on sale?
No, Louis Vuitton does not put their bags on sale. They do not have outlet stores or discounted prices online. The brand’s strategy is to maintain its strict standards for quality and exclusivity.
Is Louis Vuitton expected to raise prices as much as 20 in China?
Louis Vuitton was expected to raise prices by as much as 20% in China in February 2023, according to multiple sources, including Reuters and Aawsat.
Is Louis Vuitton cheaper to buy in Italy?
Depending on the bag’s price tag, you may snag a discount of between 20 and 25% buying the bag from Italy or any other European country. Sometimes, you may save up to $1,000 if you buy the LV bag in Italy rather than the US.
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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