Right before Christmas 2021, many luxury brands decided to increase margins by increasing prices of a lot of items. Louis Vuitton was one of them. Let’s look back and analyze what took off and how much Louis Vuitton bags currently cost.
October 1st 2021. Rumors said it and… they turned out to be true this time! The biggest price increase was actually on the “Pochette Accessoire”.
The ever-popular Louis Vuitton Pochette Accessoire in Monogram Canvas price increased from $630 to $790, which is a 25% increase since January 2021 but the price increased again in October 2021 (by 33%). It actually went from $790 to $1050 (+$260). CRAZZZZYYY!
– The Pochette Metis was originally $2360. The price went up twice throughout the year meaning a 15% increase. The price of the Pochette Metis in December 2021 is now $2360.The Reverse Monogram version also went up and is actually the same price now as the Monogram version, whereas it was more expensive before. To find all the Pochette Metis characteristic’s and why it’s a very good investment, check this article.
– The Félicie went from $1170 to $1240 … a 6% increase!
Small Leather Goods & Bags Louis Vuitton Price Increase:
–The Mini Pochette (a really hard-to-find item) went from $445 to $540 (+21%!). Let’s just remember the 22% increase on the mini pochette last January!
–The Neverfull PM went from $1460 to $1620 meaning an 11% increase.
–The Neverfull MM went from $1540 to $1690 meaning a 10% increase.
Proportionally, the price increase on smaller sizes is greater. Louis Vuitton is moving a little slowly on the bigger versions with only a 9% increase for the GM version.
-The speedy 25 & the speedy 30 each got an 18% increase.
The Speedy 25 went from $1140 to $1350.
The Speedy 30 went from $1160 to $1370.
On the bright side, The Multi Pochette accessoire Canvas version stayed the same at $2050 USD. Same for the Key Pouch, Key Holder, Victory Wallet, Rosalie Coin Purse and in the Nice toiletry collection, the cosmetic pouch remained the same.
How many times does Louis Vuitton raise their price yearly?
Louis Vuitton price increases happen about 4 times a year and usually 3 times a year on popular items like the Pochette Metis and once a year on all the Louis Vuitton Collection. As an example, one of my favorite bags, the Louis Vuitton Keepal, increased by 6%.
Why luxury brand are increasing their prices like crazy?
Since 2020 and the Covid crisis, luxury brands have never been doing that well! With the increase in saving during the crisis, people discovered a new passion for luxury. The second market interest drives this interest for luxury goods. But, is it still worth paying the price?
Luxury is not about price. It is about rarity. The more people have it, the less desirable it becomes. If you see it everywhere, then it’s not a luxury anymore. To stay luxurious, brands need to stay “inaccessible” no matter what. Then, like Hermès, it’s not so much about the price for the quality, it’s about “you are one of them”.
When you get the idea, the price doesn’t really matter because it actually can’t be justified. For some people, this will sound completely crazy. But for others, who want “to be in”, then a long and pricey journey begins.
Every time I go to Paris, I can’t help myself by going to Galerie Lafayette, Printemps Haussmann, Le Bon Marché, and Rue du Faubourg Saint Honoré. It is what it is. I can’t explain it, but it makes me feel happy and full of joy to see these beautiful outfits, bags, and people walking around. Everything and everyone is so chic and classy.
Chanel, owned by Arnaud Lagardère, has a very strategic vision for the brand as they aspire to catch up with Hermès’ high standards. But what is happening with Louis Vuitton’s prices?!
Louis Vuitton is moving into different standards
With a 5% increase in May 2021, LV increased their price over 8% total through 2021! For the same reasons as listed above, the brand wants to redefine its image and touch a different category of people. LVMH sales figures are growing like crazy after the pandemic. Their strong numbers are driven by Louis Vuitton’s and Dior’s results.
Why you need to invest in Louis Vuitton bags:
Each price increase from the brand adds value to the brand and to your item as well. Higher prices means items that are harder to get. That’s why, on the second hand market, your item will sell faster and you won’t lose any money especially if you wait a few years. Remember the Dior Saddle? Well, since its re-edition in 2020, old vintage Dior Saddle bags are selling better than ever since their first edition of the Saddle bag in 2000 by John Gallianno.
The luxury goods resale movement is experiencing record growth, with 6 million new members joining The Real Real (TRR) in the past year, ”said TRR President Rati Sahi Levesque. “The evolving restrictions and reopenings related to COVID-19 are having a significant impact on purchasing behavior”. Savvy shoppers are turning to luxury investments, with the most dramatic growth among Gen Z and Millennials. Buyers are drawing inspiration from the past in search of personal expression, driving demand for the return of the streetwear to its pretty roots and vintage Japanese men’s clothing. And of all age groups, our data suggests Gen Z will be the most aware shoppers to date.