@vanessaziletti
If you can’t beat ’em, join ’em, we guess. Like Chanel and sister brand Louis Vuitton, Dior prices are going up on most of its iconic models in the United States. And, yes, that is while the U.S. and much of the world still struggle with COVID-19.
Akin to Chanel’s action, the magnitude of Dior’s hikes is in the range of 7%-16%. Perhaps some of the cited reasons will be similar as well. Chanel pointed to rising raw material and transportation costs. However, Chanel also cited its ongoing efforts for global price harmonization, something Dior has never discussed (Read: Chanel Admits to Price Increase: Here are the New Prices 2020).
Nonetheless, many speculate Chanel was opportunistically padding the bottom line when sales are sure to be slow and inventory limited (Chanel Foresees Tougher Times Ahead). Could it be Dior is doing the same?
@julia_mikhailiuk
Here are the latest prices for popular Dior bags, as compared to the prior ones:
| Dior Bag Style | 2019 Price (USD) | 2020 Price (USD) | % Difference |
| Lady Dior Mini Bag | $3,400 | $3,950 | 16% |
| Lady Dior Medium Bag | $4,450 | $4,900 | 10% |
| Lady Dior Large Bag | $4,950 | $5,300 | 7% |
| Dior Oblique Canvas Mini Saddle Bag | $2,450 | $2,700 | 10% |
| Dior Oblique Canvas Medium Saddle Bag | $2,950 | $3,350 | 14% |
| Dior Oblique Canvas Book Tote Bag | $2,700 | $2,900 | 7% |
| Dior Bag Style | 2019 Price (USD) | 2020 Price (USD) | % Difference |
| Lady Dior Mini Bag | $3,400 | $3,950 | 16% |
| Lady Dior Medium Bag | $4,450 | $4,900 | 10% |
| Lady Dior Large Bag | $4,950 | $5,300 | 7% |
| Dior Oblique Canvas Mini Saddle Bag | $2,450 | $2,700 | 10% |
| Dior Oblique Canvas Medium Saddle Bag | $2,950 | $3,350 | 14% |
| Dior Oblique Canvas Book Tote Bag | $2,700 | $2,900 | 7% |
It is interesting that the ‘super-luxury’ brands – with relatively price insensitive customers – are the ones adopting price increase strategies. Louis Vuitton, a brand synonymous with global luxury, was the first to increase prices during the pandemic. At around 8%, the increase was higher than the average (between two back-to-back increases). And Chanel and Dior, which both rank higher in the luxury pyramid, announced more significant price increases. These are brands that never go on sale either. On the other hand, we have yet to see this strategy from the uber-exclusive Hermès.
@lennon2289
@je.suis.lou
Moreover, next tier luxury brands apparently are not shifting prices upward. A report by BoF highlights that brands like Gucci and Prada aren’t seeing significant demand, even in China, and therefore are not likely to announce increases any time soon. What is even more interesting is that other designer brands like Mulberry have in fact reduced their prices!
Stay tuned as we continue to monitor pricing strategies for our favorite luxury brands.
Love PurseBop
XO
Updated: July 20th, 2020
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