Louis Vuitton changes strategy in China: raises prices

Louis Vuitton raises prices in China. The French luxury company, owned by LVMH, has increased its prices in the Asian country by almost 4% over the past year, according to the BechMarque tool of Deloitte.

In the United Kingdom and Japan, the French company has also raised its prices in the last twelve months, according to the consulting firm, while in the rest of the countries where it operates Louis Vuitton has kept its prices stable.

This comes a year after Louis Vuitton chose to lower the price of its products in China to support the efforts of the Government of the country to reduce the price of luxury products and boost domestic consumption.

Chanel, Dior or Bottega Veneta are other companies that have also reduced prices in China

Chanel, Dior or Bottega Veneta are other companies in the sector that have followed this strategy in the last year, according to Jing Daily. In this context, the Swiss bank Credit Suisse has indicated that it expects luxury companies to make “aggressive” increases in all key markets.

In 2018, LVMH’s revenue was 46.8 billion euros. The French luxury holding, owner of brands such as Louis Vuitton or Dior, ended the year with a 10% growth. The benefit, on the other hand, increased by 18%, to 6.4 billion euros.

China is one of the key markets in the global pricing strategies of luxury companies. For years, brands maintained a higher price in the country than in Europe and the United States but, with the expansion of ecommerce, they chose to equal them in all its geographic regions, lowering prices in China and raising them in the United States.