Louis Vuitton raises prices in Korea amid backlash against LVMH

The Louis Vuitton logo is seen outside a store on the Champs-Elysees in Paris, France, in 2020. [YONHAP/REUTERS]

Luxury brand Louis Vuitton has increased its prices in Korea yet again, despite the recent backlash against parent company LVMH over inflated prices and exploitative labor practices in handbag production.

French luxury conglomerate LVMH’s Louis Vuitton has increased the prices of some goods by an average of 5 percent on Tuesday, according to industry insiders the same day. The hike comes five months after the brand upped its prices in February of this year.

The brand’s CarryAll PM Monogram handbag, for instance, is now 3.67 million won ($2,640), up 6 percent from 3.46 million won, and the Pochette Métis East West Monogram bag is up 5.9 percent to 4.1 million won. The Néonoé BB Monogram, whose price had already been raised from 2.58 million won to 2.74 million won in February, has been further increased by 5.8 percent to 2.9 million won.

The price hike comes on the heels of raised prices by LVMH's Italian fashion brand Fendi for some of its flagship products by between 3.5 percent and 4.9 percent in April.

Chanel Korea upped its prices for popular bags such as those from its Classic Flap bag line by around 6 to 7 percent in March. French luxury house Hermès increased its prices for some of its clothing, shoes and bags in January by an average of 5 to 10 percent.

The luxury industry's supply chain is under increasing scrutiny by consumers and investors, as unethical and unsustainable practices have come to light.

LVMH brand Dior came under fire in June after a court document showed that a bag was selling at almost 50 times the price of its production cost of 53 euros ($57) and was made in outsourced factories with illegal working conditions. That "a bag that costs 80,000 won to make is selling for 3.85 million won" became widely publicized through the media in Korea.

A subsidiary of Italian fashion group Armani Group was also placed under judicial administration in April after luxury brand Giorgio Armani was caught outsourcing its production to firms that subcontracted the work to workshops that breached labor codes. Workers were paid 2 to 3 euros per hour to make bags that were sold for Armani’s subcontractors for 93 euros and retailed for about 1,800 euros.

BY KIM JU-YEON [kim.juyeon2@joongang.co.kr]