Luxury brands have started the new year with price hikes, with reports confirming on Jan. 21 that Louis Vuitton raised prices on select handbags.
According to industry sources, French luxury fashion house Louis Vuitton raised prices on specific handbag models on Jan. 18. The CarryAll PM Monogram Canvas and CarryAll BB Monogram Canvas saw their prices jump from 3.67 million won ($2,550) to 4.15 million won ($2,890), marking an increase of over 13%. The All-In BB bag also experienced a price hike, rising from 3.56 million won ($2,480) to 3.85 million won ($2,680), reflecting an approximate 8% increase. Louis Vuitton’s handbag lineup includes models in four sizes: BB, PM, MM, and GM.
Other leading luxury brands, such as Hermès, Rolex, and Gucci, have also implemented price hikes early this year. Chanel, another prominent French luxury brand, raised the price of its handle-embellished Flap Bags on Jan. 9. The calfskin mini version increased from 8.24 million won ($5,730) to 8.53 million won ($5,960), while the large version rose from 9.83 million won ($6,840) to 10.17 million won ($7,080).
Hermès adjusted its prices on Jan. 3, with key items such as handbags and jewelry seeing an average increase of over 10%. Notably, the price of the Birkin Bag 30 in Togo leather climbed from 18.31 million won ($12,750) to 20.11 million won ($14,000), surpassing the 20-million-won threshold. In the jewelry category, the Ever Herakles wedding band in diamond-set rose gold increased from 2.55 million won ($1,770) to 2.95 million won ($2,050), representing a rise of more than 15%.
Annual price increases by luxury brands are routine, but the recent depreciation of the Korean won against the U.S. dollar is believed to be a significant contributing factor. However, some consumers have expressed frustration over the frequency and magnitude of these hikes, deeming them excessive.
Louis Vuitton is the flagship brand of LVMH Moët Hennessy, the world’s largest luxury conglomerate. After a temporary slowdown due to economic challenges in its largest market, China, LVMH has reclaimed its status as Europe’s most valuable company. As of the Jan. 17 market close, the group’s market capitalization stood at 345.3 billion euros (517 trillion won).
Optimism about a recovery in the luxury market has been partly attributed to speculation about policies under U.S. President Donald Trump’s administration. Analysts suggest that a stronger U.S. dollar could elevate the valuation of luxury brands while making luxury goods relatively more affordable for U.S. consumers due to favorable exchange rates.
A luxury industry official remarked, “While annual price adjustments are standard practice among luxury brands, Louis Vuitton’s increase of over 10% may feel particularly steep for consumers.”
