Jean-Jacques Guiony, CFO of Louis Vuitton's parent comany LVMH, announced on a conference call Tuesday that the brand will be shifting towards higher priced accessories due to higher quality materials.
In recent months, price tags on Louis Vuitton bags have increased by as much as 12 percent in the effort to increase sales.
While it may seem like such a decision could alienate consumers, the brand hopes that a boost in prices will attract the industry's high-end customers and feed its exclusivity. Increased price tags will go hand-in-hand with more intenseive promotions for the brand's pricier leather bags.
The decision seems to answer to the existential crisis of all luxury brands: maintaining both an image of 'luxury' and top-of-the-charts sales in an increasingly sophisticated world with sliding currencies. Though it may be difficult to forsee the market's response to the price change, the brand's success could have major implications for the rest of the industry. As an industry leader, Louis Vuitton has the power to raise the bar for other luxury brands who may follow suit.
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