Louis Vuitton bags have become more expensive in the US after increased duties imposed by President Donald Trump's administration. Experts say there is a slight average price increase in an attempt to cushion the blow to the end consumer. This is reported by WWD, reports UNN.
Details
Luxury goods market analysts Bernstein and Barclays, citing the manufacturer's official website, reported that the French luxury brand raised prices by approximately 4%.
This price increase is likely a response to the recent introduction of a 10 percent import duty imposed by the United States. The price increase ranged from 7% for some bags, such as the NeoNoe, to 1% for products such as the Twist or Keepall
She said her team also found price jumps of 3% in Japan and 2% in France.
Luca Solca, an analyst at Bernstein, noted that prices for CarryAll, Biker, All In and Graceful handbags remained unchanged. He suggested that these products may be manufactured in the US, where Vuitton operates three leather goods factories in Texas and California.
In his opinion, Vuitton's average price increase of 3.6% "seems more than sufficient to cover even the worst-case scenario of 20% tariffs on EU exports to the US."
In addition, given that duties also apply to the "industrial first cost", Bernstein expects that "price increases on luxury goods will be lower than the advertised 10% overall for the industry, and will fall within the 5-7% inflation of comparative prices that has been observed in the industry over the past 50 years."
Supplement
Analysts are more concerned about the broad impact of tariffs on consumer sentiment, financial markets and currencies than the negative impact on prices in the luxury segment.
Last week, Hermès International also announced its intention to raise prices on various product lines in the US from May 1 to offset the impact of duties.
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