In the face of global economic challenges, several luxury brands have announced or implemented price increases on their products. Recently, Chanel, the renowned French luxury brand, raised the price of some of its popular handbags, and Tiffany, the iconic jewelry brand, is also set to increase prices. According to information obtained by the Global Times, Tiffany’s staff revealed that the prices of diamond ring products would go up starting Friday. While the specific details of the price hike were not disclosed, media reports suggest that Tiffany’s product prices globally could rise by 20 to 59 percent.
Users on the Chinese social media platform Xiaohongshu observed that prices of Chanel bags have increased since November 2. A comparison on Chanel’s official website showed that the price of the Large 2.55 handbag is now 75,500 yuan, up from 71,500 yuan in November 2021, as per a user post. Zhang Yi, CEO of iiMedia Research Institute, explained to the Global Times that luxury brands are adjusting prices to compensate for losses due to global economic uncertainties and to sustain stable profits. Recent financial reports from luxury groups such as Kering, Hermès, and LVMH indicate strong performance despite the challenging economic environment.
Kering Group reported a 23 percent year-on-year revenue increase to 5.14 billion euros in the third quarter of 2022. LVMH’s income from January to September 2022 reached 56.5 billion euros, marking a 28 percent increase from the previous year. Hermès saw its revenue rise to 8.6 billion euros by the end of September 2022, a 30 percent increase year-on-year, with sales in China rebounding strongly even amidst COVID-19 related store closures. A representative from Hermès stated that the brand expects a price rise of 5 to 10 percent in 2023 due to increasing costs and currency fluctuations. However, the demand for Hermès products remains robust, as reported by Reuters. Zhang Yi noted that the purchasing power of luxury consumers tends to be resilient, allowing brands to adjust prices to maintain profitability. However, analysts caution that excessive reliance on this strategy could potentially backfire and harm the brand’s reputation.
Discover comprehensive supply chain report news insights at The Supply Chain Report. For international trade resources, visit ADAMftd.com.
Discover comprehensive supply chain report news insights at The Supply Chain Report. For international trade resources, visit ADAMftd.com.
#LuxuryBrands #PriceIncreases #Chanel #Tiffany #KeringGroup #LVMH #Hermes #GlobalEconomy #DiamondRings #Handbags #PriceHike #LuxuryMarket #EconomicChallenges #ConsumerTrends #Xiaohongshu #LuxuryDemand #BrandStrategy #LuxuryConsumer #PriceAdjustments #GlobalLuxuryMarket
In the face of global economic challenges, several luxury brands have announced or implemented price increases on their products. Recently, Chanel, the renowned French luxury brand, raised the price of some of its popular handbags, and Tiffany, the iconic jewelry brand, is also set to increase prices. According to information obtained by the Global Times, Tiffany’s staff revealed that the prices of diamond ring products would go up starting Friday. While the specific details of the price hike were not disclosed, media reports suggest that Tiffany’s product prices globally could rise by 20 to 59 percent.
Users on the Chinese social media platform Xiaohongshu observed that prices of Chanel bags have increased since November 2. A comparison on Chanel’s official website showed that the price of the Large 2.55 handbag is now 75,500 yuan, up from 71,500 yuan in November 2021, as per a user post. Zhang Yi, CEO of iiMedia Research Institute, explained to the Global Times that luxury brands are adjusting prices to compensate for losses due to global economic uncertainties and to sustain stable profits. Recent financial reports from luxury groups such as Kering, Hermès, and LVMH indicate strong performance despite the challenging economic environment.
Kering Group reported a 23 percent year-on-year revenue increase to 5.14 billion euros in the third quarter of 2022. LVMH’s income from January to September 2022 reached 56.5 billion euros, marking a 28 percent increase from the previous year. Hermès saw its revenue rise to 8.6 billion euros by the end of September 2022, a 30 percent increase year-on-year, with sales in China rebounding strongly even amidst COVID-19 related store closures. A representative from Hermès stated that the brand expects a price rise of 5 to 10 percent in 2023 due to increasing costs and currency fluctuations. However, the demand for Hermès products remains robust, as reported by Reuters. Zhang Yi noted that the purchasing power of luxury consumers tends to be resilient, allowing brands to adjust prices to maintain profitability. However, analysts caution that excessive reliance on this strategy could potentially backfire and harm the brand’s reputation.
Discover comprehensive supply chain report news insights at The Supply Chain Report. For international trade resources, visit ADAMftd.com.
Discover comprehensive supply chain report news insights at The Supply Chain Report. For international trade resources, visit ADAMftd.com.
#LuxuryBrands #PriceIncreases #Chanel #Tiffany #KeringGroup #LVMH #Hermes #GlobalEconomy #DiamondRings #Handbags #PriceHike #LuxuryMarket #EconomicChallenges #ConsumerTrends #Xiaohongshu #LuxuryDemand #BrandStrategy #LuxuryConsumer #PriceAdjustments #GlobalLuxuryMarket
