Louis Vuitton Price Increase – Pros vs. cons and how it will affect you. Do you feel a bit disheartened that Louis Vuitton Price is going up? We all are. In this post, we will reveal all the details about this move, why it matters, and what it means for you. Whether you are a luxury bag collector or simply looking to buy your first Louis Vuitton piece, you better read to understand which LV bag increased in price and the best pieces for investment.
Louis Vuitton is more than just a fashion brand. It is a cultural phenomenon today, a stratus unit of measure for some people and a lifelong dream for others.
The Fashion Industry giant LVMH (Moët Hennessy Louis Vuitton – a French multinational holding home to Louis Vuitton at the moment) spreads its influence far beyond the luxury fashion brands that it owns directly. That is why if you saw the news about Louis Vuitton’s price increase with a grin, keep reading, and you will probably find out that it may affect you more than you think now.
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Louis Vuitton Price Increase – Pros vs. cons and how it will affect you
Prices are going wild all over, so the fact that another brand or manufacturer is talking about another increase at the beginning of a year is not a surprise. But how justified are those raises for the luxury brands, which are already expensive beyond comprehension for the majority of consumers?
Let’s dive into the mysterious and colorful world of luxury fashion brands and designer handbags to see what their pricing is all about and why it matters, even for those who cannot casually afford to buy those items on a daily basis.
Why do luxury brands like Louis Vuitton raise their prices?
Well, generally, for the same reason, the prices are also going up in the mass market segment. The past several years were pretty tough for everyone. The COVID restrictions that were particularly harsh precisely in the regions where fashion brands source and manufacture their materials and goods led to severe damage to supply chains and the inevitable rise of artisan wages.
Yes, we know, “boo-hoo, poor little multi-billion Louis Vuitton is suffering from rising manufacture costs.” But in fact, it does, and, unfortunately, if we want LV to remain LV and provide us with their dreamy magic of high-end luxury, we shall have to accept another price raise whether we like it or not. By the way, LV is not the only luxury brand announcing a price increase. Other luxury brands such as Hermes, Gucci, Dior, and many others have similar plans for this year.
Why does it happen industry-wide? The answer is pretty simple and even trivial for many people. The good old COVID changed the world entirely in 2020 and affected us even after all the restrictions had been lifted.
The thing is that luxury brands have discovered a whole new auditorium for their goods during and right after the Lockdown. The majority of people who didn’t really suffer financially from the Covid restrictions have found a new hobby for themselves, let’s say.
With the savings made from the covid lay low situation, many choose to invest in luxury designer items such as LV handbags, Rolex watches, or Gucci sunglasses, to name a few. The demand for these items didn’t just rise; it has skyrocketed! In fact, LVHM CEO Bernard Arnault has reported a 49% increase in the organic customer base for Louis Vuitton in the post-Covid period.
Since, according to Jean-Jacques Guiony, the chief financial officer for LVMH, the price increase was inevitable for the reasons we have already described, Louis Vuitton and other luxury brands decided that doing it on the crest of demand wave would be the best move that will help brands fill up the financial gaps made by supply crises without losing their customers.
So, how much will the Louis Vuitton prices increase this year?
The good news is that LV is not increasing prices on all its items yet. So if you have been planning to buy a signature Neverfull tote, an item from the Louis Vuitton X Yayoi Kusama collaboration, or a Ready to Wear collection, you may relax, as those will not be affected by the raise. Just yet.
However, from what we see, many items are facing somewhat between a 5% to a whopping 20% price increase this year. The Chinese market will likely be affected most, as bloggers on China’s social media platform Xiaohongshu already encourage their followers to line up in front of Louis Vuitton boutiques before their desired handbags and accessories become entirely unaffordable.
Although Chinese influencers don’t reveal their sources, the overall trend in the Asian market is pretty understandable.
The COVID restrictions in the region were particularly harsh, and some remained in action until 2023, which did not really give those who wanted to invest in luxury items much space for maneuvering. In other words, this year`s price increase comes as short notice for Asian consumers; therefore, the hype around purchasing LV bags and accessories is particularly high. And Louis Vuitton, as well as other luxury brands officially presented on the Chinese market, will seize the moment!
As for the general price increase of Louis Vuitton, here are some numbers that will give you the general picture
- LV Petite Malle will go from $4,637 to $4,800 ( a 3,5% increase)
- LV Alma will go from $1,580 to $1,652 ( 4% increase)
- LV Speedy will go from $1,204 to $1,280 ( 6,2% increase)
As you can see, the changes in the American and European markets will not be as dramatic as they are predicted for Chinese fans of Louis Vuitton, but they are still pretty tangible.
The underbelly of Louis Vuitton’s price increase
Everything we have discussed may seem pretty apparent to anyone who notices the prices growing everywhere, from their local grocery shop to online stores. But do brands really manage to justify their price games in those neat press releases and financial reports?
Apparently, there is a lot going on around the LV price increase, which makes the company’s pricing policy pretty shady and raises many questions about how justified the new price tags are.
The upcoming changes are not the first that Louis Vuitton has introduced since the COVID-effect on the luxury brands market. The iconic handbags manufacturer conducted the same price increase in February 2022, which ended in a huge scandal within the company and made hundreds of employees simply walk out of the factory`s gate.
On February 10, 2022, hundreds of Louis Vuitton workers staged a walkout from three of its 18 factories in France, claiming they do “fantastic work for pitiful salaries.” It sounds like something you could hear from employees of fast fashion brands constantly accused of unfair wages, but those who work for the luxury segment suffer from the same issues.
According to “The Sourcing Journal,” a Louis Vuitton employee in France with 15 years of experience makes $16 per hour. Of course, it is much more than any poor sweatshop worker from a third-world country could ever dream of. Still, those numbers are pretty shocking if you consider the level of craftsmanship put into LV handbags (the craftsmanship that, in many ways, allows the brand to be a luxury one) and the price tags they eventually put on those items in the store.
According to some sources of Forbes magazine, the employees were eventually offered an average salary raise of $171, which still does not look too fair if you do simple math and figure out how much the brand has made on the latest price increase even if you count all the associated cost of a post-Covid supply crisis.
The fact that Bernard Arnaut, who is often called “King Midas of Luxury,” remains the 3rd richest man in the world according to the same Forbes Magazine, still raises concerns about how fairly the revenue from the Covid luxury brands hype and late price increase are distributed.
In other words, there is definitely some blood in the water, and although the latest dispute within LVMH has been resolved and hushed somehow, we haven’t heard the last of such scandals.
Pros and cons of Louis Vuitton prices going up
This news is excellent for those with a collection of Louise Vuitton bags since they can profit significantly from their investment in handbags. On the other hand, some might see the price rise as a punch under the belly. Their dream of owning a luxury designer bag will have to be delayed until they save more to afford an iconic LV bag.
The constant uncertainty urges many luxury collectors are feeling the urge to buy the products as soon as they get the chance since they don’t know whether next day the price will go up or not. On Reddit, there is a dedicated group for Louis Vuitton, and I noticed that many ladies are concerned about this price increase. However, some people with disposable income aren’t bothered too much about the price change.
Why are Louis Vuitton bags worth so much?
Louis Vuitton bags are considered luxurious and expensive for several reasons:
- Brand prestige: Louis Vuitton is a highly respected and well-known luxury brand that has been around since 1854. Over the years, the brand has established itself as a symbol of wealth and status.
- High-quality materials and craftsmanship: Louis Vuitton bags are made from high-quality materials, such as the brand’s signature coated canvas, leather, and exotic skins. They are also crafted with great attention to detail by skilled artisans, which can take many hours to complete.
- Limited production and exclusivity: Louis Vuitton produces a limited number of bags each year to maintain their exclusivity and high-end appeal. This also makes them more valuable as they are not mass-produced.
- Timelessness: Many Louis Vuitton bags have a classic and timeless design that can withstand changing fashion trends, making them a long-term investment piece.
- Resale value: Louis Vuitton bags have a high resale value, as they are highly sought-after by collectors and fashion enthusiasts. This means that even if you decide to sell your bag in the future, you are likely to recoup a significant portion of your initial investment.
Overall, the combination of brand prestige, high-quality materials and craftsmanship, limited production, timelessness, and high resale value make Louis Vuitton bags highly coveted and valuable in the luxury fashion market.
So, is a Louis Vuitton bag really a good investment?
Like any investment opportunity, I would say, “The Devil is in the Detail.” In another world, if you grabbed an LV Speedy last year, it probably will not make you rich today. However, every price increase instantly boosts interest in pre-loved items, especially if they are in good condition.
The good thing is that Louis Vuitton takes quality control very seriously. It means that their items are made to last and will probably preserve a marketable look even after they have been used for a while.
Another benefit of investing in LV handbags and accessories is that it is probably one of the most famous luxury brands worldwide. It means you won’t have trouble finding a buyer if you decide to put your Louis Vuitton item on the market. After all, the latest Covid hype around buying LV bags for resale is not something new. Some people do it as their full-time job for years!
But if you are new to the concept and don’t know how much of an investment opportunity your Louis Vuitton handbag is considering the ongoing price increase, here is a small guide to help you estimate whether it is worth the hassle.
- AGE. The age of your luxury item is one of the main factors when reselling it. A Louis Vuitton bag that is 4-5 y.o. is considered old and may become pretty rare and, therefore, desirable. If your LV is older than ten years, you are a proud owner of a vintage item and may hit the jackpot if the bag is in good condition;
- CONDITION. Despite what many people think, condition hardly has anything to do with age. But the overall principle is pretty straightforward – better condition allows you a higher asking price;
- DESIGN. Even Sun has spots, and not all Louis Vuitton designs are equally desirable on the market. Of course, evergreen items like Speedy, Neverfull, and Alma have large fanbases worldwide. However, it is always a good idea to pay attention to collabs and limited editions as they definitely have added collectors value;
- MATERIAL. With all due respect to vegan and cruelty-free materials, those waste your time and money if you consider a luxury item an investment opportunity. They simply don’t last and deteriorate with time, damaging the overall marketable look of the item. Always go for natural leather and high-quality fabrics if you plan to resell your luxury bag. They will cost you more initially but preserve good condition longer even if you use the item yourself and will find their new owner much faster.
Bonus tip – look for the beautiful mistakes!
Louis Vuitton clearly stated that they never have sales and prefer to simply burn their unsold items instead of devaluing them. This is not entirely true… Yes, you will never see the cute red SALE sticker in the window of a Louis Vuitton store, and some burning does happen in the end. But before that, LV holds special private sales for employees.
You may be up for a treat if you get access to one of those events or know someone who does. Those designs might have been a flop this season, but they often turn into “beautiful mistakes” and gain incredible collectors’ value after the remaining inventory is actually burnt.
The market for such items is not very big, but if you manage to lay your hands on one of them, hold tight, as you can get a lot from the right buyer.
So, is the upcoming price increase a good opportunity to warm up your hands on re-selling pre-loved Louis Vuitton bags or those items you might have bought during the lockdown as an investment opportunity?
It can be if you have a unique, limited-edition item or one of the most desired demands affected by the changing prices. However, remember that not all LV bags and accessories are born equal, and some may have value for such a restricted number of buyers that it simply is not worth the hassle.
In general, Louis Vuitton items have a retention value of over 90%, which is great when we talk about any kind of investment. But just like the brand’s masterminds managed to find the best time to increase their prices, you may also want to wait for your moment to hit the score. After all, it is definitely not the last time expensive brands decide to raise the bar even higher.
Other options to buy a Louis Vuitton bag
If you still want to buy a Louis Vuitton bag but cannot afford a brand-new one, you can look for re-sellers or pre-owned items. Some will sell their designer bags for personal reasons. Check the suggestions below to buy pre-owned Louis Vuitton bags:
Did you get all the answers to the Louis Vuitton price increase concern? Did I miss anything, or would you like us to write about other brands? Drop a comment below and let me know your suggestions. Also, if you like this report, please share it on social media to help other fashionistas learn more about this brand and what to expect before investing in a Louis Vuitton bag.