Money Bags: Louis Vuitton Raising Prices on Handbags
If you’ve been longing for a Louis Vuitton handbag, be prepared to soon shell out more cash. The fashion house is shifting to higher-quality leather to up the handbag ante and make LV more competitive with other luxury brands such as Céline. The shift is resulting in a spike in prices since LV is seeking out top-quality leather for its bags.
Though the shift is in full swing, it will take more than just a few weeks to make the permanent shift. Louis Vuitton is finding it challenging to locate a steady supply of this type of leather, according to CFO Jean-Jacques Guiony, who told WWD that, “raw materials could constrict growth as Vuitton strives to sell more high-priced leather bags.” Louis Vuitton, it seems, is hoping to continue the success of the W and Capucines high-end totes which were the first new purses made in LV’s new style. These bags retailed for a whopping $3,380 and $4,730, respectively..
LV ran ads with Michelle Williams to promote the new W and Capucines totes, but compared to other luxury leather brands, LV still didn’t quite match up. This is something that Guinoy acknowledged, as he said it will take the company some time before they can match other higher end brands. It might take a little longer than expected given that Marc Jacobs just stepped down as its head designer.
Nevertheless, Louis Vuitton is moving forward with its shift, may your wallets be prepared.