Louis Vuitton goods in China expected to spike by up to 20%

Bloggers on China’s social media platform Xiaohongshu are forecasting price increases at Louis Vuitton of between 8 per cent and 20 per cent kicking in last month, and chatter has focused on lines forming outside stores in Shanghai, for example, seen as a sign that shoppers are seeking to make purchases before any increase.

Users of the Xiaohongshu site, known in the industry as Little Red Book, often cite sales associates for the fashion labels and have a track record of correctly predicting price increases but do not always specify their sources.

LVMH executives in January signalled limited price hikes, mainly for leather goods, to reduce price gaps between the United States and Europe.

“From time to time we have the possibility of doing it,” LVMH chief financial officer Jean-Jacques Guiony told reporters at a company results presentation in January, noting that executives have a prudent approach to price hikes, and seek to avoid multiple increases.

Louis Vuitton, which sells a popular tote bag called Neverfull for €1,500 (S$2,100), raised prices in France by around 3 per cent to 7 per cent in February, according to website PurseBop.

The website, which tracks the luxury market, cited models of the top handle Capucines bag that went up to €5,500 from €5,150, and a Pochette Accessoires purse that rose to €1,050 from €980.

LVMH and Louis Vuitton did not immediately reply to a request for comment.

This article was first published in The Straits Times.