Louis Vuitton set to get even more expensive with price hike

Louis Vuitton has raised the prices on many of its best-selling items Louis Vuitton has raised the prices on its best-selling monogram accessories by up to 12per cent. Antoine Belge, an analyst at HSBC, revealed the cost increase applies to non-leather goods such as the popular canvas versions of the Speedy handbag and Neverfull tote.
LVMH, the luxury brand's parent company, introduced the price hike across its main markets at the beginning of the year in an attempt to keep on top of sliding currencies.
According to analysts' estimates canvas items make up about two-thirds of Louis Vuitton's total accessories sales.
Price increases of around ten per cent were spotted in the euro zone, and of ten per cent or more in the UK and in the US over recent months.
It also noted hikes of five to ten per cent on the same goods in several Asian markets including China, Hong Kong, Taiwan and Singapore.
Japan was the first to feel the pinch. On February 15 prices were upped by about 12 percent to account for the yen plummeting to a three-year low against the dollar and the euro.
A spokesperson for Louis Vuitton explained to Bloomberg at the time: “We are an importer, so the weakening yen and rising raw material prices are part of the reason for the price increase.”
Analysts said the higher prices are unlikely to drive away its most loyal customers, who often don't check price tags before they buy.
A retail analyst said: “(Luxury) brand goods have low price sensitivity. People who buy those brands won’t be so frugal as to care about another 10,000 yen.”
The New York-based website Mizhattan reported the US price hike in February. It stated: “Chances are, if you have a strong and loyal relationship with a (sales assistant) at Louis Vuitton, you may have already heard about the company's upcoming price increase in the US market.”
“Louis Vuitton employees started discreetly alerting their VIP customers that the powerhouse brand is planning to increase prices starting Monday, February 18th.”
“My own source at the flagship boutique informs me that LV lovers should expect to see a 5-7% hike on almost all items that the French luxury house has to offer.”
Analysts said that shoppers can expect to see small hikes on most products.