Since the corona-virus outbreak, the price of some Gucci handbags has increased between 5% – 9% specified by investment management firm Jefferies International.
During the months of May and June Jefferies compared the prices of two Gucci’s best-known bags, the Dionysus and the Zumi in various countries.
Allegedly, it found price increases of between 5% and 9% for both styles in Italy, China and the UK. According to Jefferies analyst Flavio Cereda, the change would narrow the gap between handbag prices in Europe and in major emerging luxury markets such as China. Nevertheless, Cereda said the price in euros of the Dionysus bag in China was still 28% higher than in Italy after the increase. The gap stood at 23% for the Zumi model. “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 Cereda.
As a result of a rise in the cost of raw materials due to the Covid-19 pandemic, Chanel announced it was increasing the price tags on its handbags and other leather accessories, As reported by ILM, in May.Including the 11.12 and 2.55, two of its most recognizable leather flap-front, chain-strap bags, and other small leather goods by between 5% and 17%.
Reference:
Gucci leather handbags price tag up 9% – International Leather Maker. (n.d.). Retrieved June 23, 2020, from https://internationalleathermaker.com/news/fullstory.php/aid/8591/Gucci_leather_handbags_price_tag_up_9_25.html
