Top luxury brands, including Chanel and Louis Vuitton, have increased prices of some of their most coveted products as they seek to make up for sales lost during weeks of coronavirus lockdowns.
High-end houses have all reported brisk business in South Korea and the key Chinese market, where shops began to reopen in March, partly offsetting a slump in Europe and the United States - where restrictions are only just starting to be lifted.
But with consultancy Bain estimating sales for the US$300 billion (S$428.7 billion) sector to fall by up to 35 per cent this year, bringing to a crushing halt a decade of spectacular growth, luxury groups are moving quickly to protect margins.
Chanel said it was increasing prices on handbags and some small leather goods by between 5 per cent and 17 per cent around the world as the pandemic had pushed up the cost of certain raw materials.
"These adjustments are made while ensuring that we avoid excessive price differentials between countries," it said. The Korea Times reported price rises of 25 per cent on Chanel goods in South Korea.
Industry powerhouse LVMH's star fashion label Louis Vuitton - which the company said last month was enjoying sales growth in excess of 50 per cent in China in early April - has also been raising the prices of handbags in the United States and Europe.
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