Gucci hikes price of handbags by up to 9 per cent
The label’s Dionysus and the Zumi handbags now cost up to 9 per cent more
Gucci has hiked the price of some of its handbags by up to 9 per cent, joining a number of luxury fashion brands trying to recoup coronavirus losses by passing them on to the consumer.
We are unsurprised that Gucci is following suit with opportunistic price increases
A report by investment management firm Jefferies International compared the prices in various countries of two of Gucci’s best-known bags – the Dionysus and the Zumi – in May and June. It found price increases of between 5 per cent and 9 per cent for both styles, in Italy, Britain and China.
Jefferies luxury goods analyst Flavio Cereda noted that the change would narrow the gap between handbag prices in Europe and in major luxury markets such as China.
Nonetheless, the price in euros of the Dionysus in China was still 28 per cent higher than in Italy after the increase. The gap stood at 23 per cent for the Zumi, Cereda’s data found.
“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,” Cereda said.
Chanel made a similar move in May, increasing the prices of some handbags, including the 11.12 and 2.55, two of its most recognisable leather flap-front, chain-strap bags, and other small leather goods by between 5 per cent and 17 per cent.
“These adjustments are made while ensuring that we avoid excessive price differentials between countries, in line with our commitments regarding price harmonisation,” the brand said at the time.
Updated: June 21, 2020 09:01 PM