French luxury goods giant Kering has released its annual financial figures for the 2021 fiscal year. cheap hermes bags In fiscal 2021, group revenue increased significantly by 35% to 17.645 billion euros, an increase of 13% compared to 2019. https://www.fauxhermesbag.com/ In addition, French luxury brand Hermès (Hermes) will also release performance data this week. Hermes At the performance briefing, the issue of price adjustment will become the focus of investors’ attention.

This Tuesday, French luxury brand Louis Vuitton (Louis Vuitton) has officially announced that based on the overall planning of the company’s pricing strategy, the brand will adjust the prices of some products from February 16, 2022 to adapt to changes in the international business environment.

Analysts at the securities department of BNP Paribas said the overall price of Louis Vuitton rose by about 7% worldwide, and the price of leather products rose by about 8%. Hermès Birkin Among them, the price of popular handbags like Coussin, Neverfull and Capucines increased by 20-25%.

In addition, the price gap between Louis Vuitton in Europe and China remained relatively unchanged, averaging 41%, compared to 40% previously. Luxury groups often make adjustments on the grounds of reducing price differences between regions.

After a series of price hikes in 2021 and 2020, pricing power is likely to become a key driver of revenue growth in the fashion and leather goods industry again in 2022. “This year is likely to see a virtuous cycle between pricing power and brand appeal,” UBS said in the report.

After months of isolation at home, consumers are eager to spend their money on luxury fashion and accessories. Brands are taking advantage of this spending power to push themselves higher-end markets. Last year, French luxury brand Chanel raised the price of some handbags three times. Among them, the popular Classic Flap handbag is currently priced at $8,200, which is nearly $3,000 higher than before the epidemic, or a price increase of nearly 60%.

Bloggers on Chinese social media platform Xiaohongshu predict that Italian luxury brand Gucci will raise prices as soon as Friday, with Marmont bags expected to rise around 3% and other accessories likely to rise 10-15%.

*Some users of Xiaohongshu have frequently interacted with salespeople of fashion brands and have a record of correctly predicting price increases, but not always stating the source of the news.

Balenciaga, owned by Kering, raised prices in China in early January, according to users of Xiaohongshu.com. For example, prices of the brand’s hourglass handbags, small and extra small, rose by 3.5-4% to RMB 17,500 and RMB 11,500, respectively.

HSBC expects Hermès sales to rise 12% over the period at constant exchange rates. In response, Hermès denied analysts’ reports that the company had raised prices by 3% to 10% last month, and said it may address pricing issues when it reports results on Friday.