Friday, January 25, 2008

Louis Vuitton Raises Prices

According to the Wall Street Journal, "Louis Vuitton, the world's largest luxury brand and the flagship of conglomerate LVMH Moët Hennessy Louis Vuitton, raised prices of its luxury handbags and apparel in its U.S. stores by 5% yesterday -- taking a risk that its well-heeled customers will keep buying even as an economic slump hits and market turmoil persists."
To be honest, Fashiontary is not surprised by this increase because the majority of sales are now driven by the super wealthy [due to the slowdown] or overseas customer visiting the U.S. who can afford an increase. The primary reason for the increase seems to be because the dollar is very weak. Thus making accessories and other designer items extremely affordable to overseas shoppers.
Do you think others will be joining the bandwagon and raising prices? Stay tuned.

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