The French luxury conglomerate Louis Vuitton announced that it will be increasing its prices around the globe later this week. The raising of prices has become a common move by many companies that continue to struggle with the current global supply chain issue.
The fashion brand announced that increased manufacturing costs and global inflation were the core reason why its leather goods, accessories, and fragrances will be sold at a higher price.
In a statement to Reuters, LV commented on the increase saying, “The price adjustment takes into account changes in production costs, raw materials, transportation as well as inflation.”
Other French luxury competitors like Hermès and Chanel have already announced the raising of prices. In late December last year, Chanel shocked many buyers when they informed customers that most Chanel classic handbags would go up at least 60%.
The coronavirus pandemic has forced companies to suspend or minimize production for the majority of 2020, which led to delays across the globe and unprecedented supply chain disruptions on a global scale.
Last year, Louis Vuitton still reported record revenue, USD 71.1 billion, which was a 40% increase from 2020. Forbes reported that in an earnings call last month, LVMH CEO Bernard Arnault released a statement on the price increases expected this year saying, “We have to remain reasonable.”
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