Louis Vuitton Price Increase Master Thread *please include location*

[Luv2Shop1]

SO my SD just said that the price increases are

"Unfortunately costs are rising due to decreased production with the meat industry and the closed plants—skins are tied to meat consumption/production."

That's an interesting take, but that's not the reason for the increase.

This increase is about a significant decrease in revenue from China during the 1st quarter and now a global lockdown in the 2nd quarter. They're trying to recoup lost revenue while all the boutiques were closed.

BTW, I don't follow LVMH that closely...didn't realize they own Sephora and Tiffany in addition to all the other designer brands.

https://www.nasdaq.com/articles/breakingviews-corona-capital:-lvmh-loreal-pandemic-bonds-2020-04-16

https://www.businessoffashion.com/articles/news-analysis/bernard-arnault-plans-for-lvmh-rebound

 

[TraceySH]

That's an interesting take, but that's not the reason for the increase.

This increase is about a significant decrease in revenue from China during the 1st quarter and now a global lockdown in the 2nd quarter. They're trying to recoup lost revenue while all the boutiques were closed.

BTW, I don't follow LVMH that closely...didn't realize they own Sephora and Tiffany in addition to all the other designer brands.

https://www.nasdaq.com/articles/breakingviews-corona-capital:-lvmh-loreal-pandemic-bonds-2020-04-16

https://www.businessoffashion.com/articles/news-analysis/bernard-arnault-plans-for-lvmh-rebound

I wasn’t sure about the veracity of that statement, but it was the one she gave, interestingly.

 

[EdnaMode]

SO my SD just said that the price increases are

"Unfortunately costs are rising due to decreased production with the meat industry and the closed plants—skins are tied to meat consumption/production."

Haha...Isn't that basically the same reason all businesses use to explain their price increase? My cost went up. What else can they say?

Having said that, one thing LV does better than others is that they stand by their products, at least in my personal experience so that's one saving grace for me.

 

[MooMooVT]

I don't like the frequency and volume of increases. I feel like LV needs to get their act together and plan better for fewer increase realizing that 4 increases in less than 12 mo isn't going to sit well with consumers. Even if the percent of increase were the same but done in 2 increases it would feel a little more palpable (not a lot, but 4 feels egregious!).

That said, I'll still buy the LV items I'd planned for 2020 - I'll just take longer to do it. Realistically my only LV wish list item for 2020 is a Speedy B 35 DE. I was specifically looking to branch out a bit from LV anyway. I have a Gucci Marmont on my list and I'm trying to move toward jewelry and Hermes scarves this year.

I just know if I don't buy my Speedy this year it will only be more next year.

 

[yli1123]

I've been a fan for years and I was so in love with their bags. I can still remember my first ever Neverfull GM in Azur print, it lasted me 10 years and it was still in very good condition when I sold it. Then I got another GM in Ebene print in early 2019, because I was so in love with the style. Less than a year later, canvas is cracked... Not just that, my husband got me a speedy b 25 in monogram for our anniversary, it arrived this Monday with thread sticking out and visible dent on the handle. I really feel the quality control has gone bad and the price has definitely gone up. Lol

 

[louboutincherie]

To be honest, I think the true reason about raising prices is about creating a remarkable differentiation between classes. With everything is happening lately will be more poverty around us and maybe people who before can afford some goodies now they can't do it. In this way, they become the brand as an icon for the upper class.

 

[Winter’sJoy]

To be honest, I think the true reason about raising prices is about creating a remarkable differentiation between classes. With everything is happening lately will be more poverty around us and maybe people who before can afford some goodies now they can't do it. In this way, they become the brand as an icon for the upper class.

That would be disgusting. Why does one have to feel better or superior to another? My question is not directed at you, just questioning why this would be a thing.

 

[LittleStar88]

I am in no way defending a price increase, and the timing is bad and it sucks. But... It is what it is. I accept that LV is not like Coach or Rebecca Minkoff. Buying LV is an experience, collecting is a lifestyle, carrying projects a statement. I accept the difference and understand that they will do as they wish with their prices for whatever reason they fancy and a lot of people will still buy.

The average buyer probably doesn't follow price increases or buy as often as some of the folks here. So I expect a lot of people will just pay it and enjoy their item. For me, I will just have to plan a little more for my next item and make sure it is 100% love if I am going to keep it.

 

[SpeedyJC]

That would be disgusting. Why does one have to feel better or superior to another? My question is not directed at you, just questioning why this would be a thing.

Well I read a case study done on LV that stated their target customer was wealthy middle aged women from 35 to 54 years old and affluent young female adults aged 18 to 34 years old who have disposable income. So LV's target customer really is not the middle class woman or man who have to save up for a bag. So in theory their price increases are not affecting their target customers and is actually keeping the brand in a more prestigious light for them since not anyone can afford it. So I can kind of see how price increases can be a way to keep their brand more exclusive. As to why people have to feel superior that's just how some peoples brains work.



Side note- I been collecting LV for over a decade and LV did not really notice me until I bought like three bags from them within a very short time frame. Then all the sudden I was invited to a party at their flagship store in Manhattan and other events. Anyways I really think they want the real frequent shopper with money to burn like the case study suggested and not the person who saves a year and buys a bag. It makes sense, they are a business.

I did read an article awhile ago though how LV was branching out to middle class shoppers with perfumes.

 

[Winter’sJoy]

I am in no way defending a price increase, and the timing is bad and it sucks. But... It is what it is. I accept that LV is not like Coach or Rebecca Minkoff. Buying LV is an experience, collecting is a lifestyle, carrying projects a statement. I accept the difference and understand that they will do as they wish with their prices for whatever reason they fancy and a lot of people will still buy.

The average buyer probably doesn't follow price increases or buy as often as some of the folks here. So I expect a lot of people will just pay it and enjoy their item. For me, I will just have to plan a little more for my next item and make sure it is 100% love if I am going to keep it.

How do you feel knowing you are not LV’s targeted buyer since I think you mentioned having to save?

I wonder how older buyers feel since @SpeedyJC posted the case study above.

I’ve never saved for a bag or sold off items for a purchase. I usually just buy on a whim or ask for it if I see something I like.

I want to add that I feel this is unfair for those that do save up for bags for whatever reason. I just don’t like discrimination no matter the reason.

 

[Winter’sJoy]

Well I read a case study done on LV that stated their target customer was wealthy middle aged women from 35 to 54 years old and affluent young female adults aged 18 to 34 years old who have disposable income. So LV's target customer really is not the middle class woman or man who have to save up for a bag. So in theory their price increases are not affecting their target customers and is actually keeping the brand in a more prestigious light for them since not anyone can afford it. So I can kind of see how price increases can be a way to keep their brand more exclusive. As to why people have to feel superior that's just how some peoples brains work.



Side note- I been collecting LV for over a decade and LV did not really notice me until I bought like three bags from them within a very short time frame. Then all the sudden I was invited to a party at their flagship store in Manhattan and other events. Anyways I really think they want the real frequent shopper with money to burn like the case study suggested and not the person who saves a year and buys a bag. It makes sense, they are a business.

I did read an article awhile ago though how LV was branching out to middle class shoppers with perfumes.

Very interesting. Thanks for sharing. I find it funny though since even Hermes can’t stop people that I think would be outside of their targeted demographic from buying their bags so how does LV think this will do it. I will enjoy watching how all of this plays out.

 

[EpiFanatic]

Well I read a case study done on LV that stated their target customer was wealthy middle aged women from 35 to 54 years old and affluent young female adults aged 18 to 34 years old who have disposable income. So LV's target customer really is not the middle class woman or man who have to save up for a bag. So in theory their price increases are not affecting their target customers and is actually keeping the brand in a more prestigious light for them since not anyone can afford it. So I can kind of see how price increases can be a way to keep their brand more exclusive. As to why people have to feel superior that's just how some peoples brains work.



Side note- I been collecting LV for over a decade and LV did not really notice me until I bought like three bags from them within a very short time frame. Then all the sudden I was invited to a party at their flagship store in Manhattan and other events. Anyways I really think they want the real frequent shopper with money to burn like the case study suggested and not the person who saves a year and buys a bag. It makes sense, they are a business.

I did read an article awhile ago though how LV was branching out to middle class shoppers with perfumes.

Well heck. Tell them to keep on raising their prices and just bump me out of their exclusive circle. I am no longer worthy of Louis Vuitton. This is getting more and more distasteful by the minute. Heck. Hermes is looking more appealing. At least they’re honest about it. Or maybe I’m just dense.

 

[Sibelle]

Ridiculous! The prices are now at a point where I am not willing and able to buy any of their bags anymore. Time to move on for good. Who needs ridiculously overpriced handbags anyway these days ?!?

 

[amarilvlover]

Another point of view-

I'm originally from East Asia. When I was in college, only the very few carried LV, usually those with rich parents. That was almost two decades ago. Now it's not uncommon to see these young college kids with several LV bags in their collection already. You see them posting hauls and videos all over the internet. In my opinion, "luxury" has become more accessible to general average consumers. I once read a book about how the label conscious young Japanese women save up for months to buy a LV bag, while eating $4-5 convenience store lunch meals.

 

[lovecouture]

Yes, I was arranging some stuff last night and found a receipt dated 2008 for a Speedy 25 which cost $620 CAD...

I bought my 2 speedys, DA and DE, they were 620$ each as well. My neverfull GM was 750$ CAD. My Keepall bandoulière 60 was 1200$ CAD. Good old days. I keep thinking I should have bought more Chanel back then also.