Gucci Increases Handbag Prices Following Coronavirus Impact
Following similar actions by labels like Chanel and Louis Vuitton.
Following impacts of the ongoing COVID-19 pandemic, Gucci has decided to increase prices of its handbags to combat losses throughout Q1 and Q2. The pandemic has impacted the luxury sector immensely, and we’ve already seen Chanel change its prices to reflect the current climate.
Gucci’s adjustments were detailed in a report by Jefferies analysts, seeing surges between five to nine percent for the Dionysus ($2,290 USD) and Zumi ($2,980 USD) bag silhouettes across China, Italy and the U.K. Labels like Louis Vuitton have also followed the same business move, relying on their key demographic of wealthy spenders to remain loyal and continue to shop, despite increases in price. “We are unsurprised that Gucci, another brand with strong brand heat, is following suit with opportunistic price increases in an attempt to mitigate revenue contraction,” said analyst Cereda, explaining that the new change will tighten the gap between the lower cost of handbags in Europe in comparison to consumer markets in China, where prices soar higher.
It remains to see when the price increase will take place. Meanwhile, learn more about Chanel’s decision to up prices here.