Recently, there have been reports that Cartier, a luxury jewelry brand under the Lifen Group, plans to raise prices in the coming weeks, with an adjustment range of 3% -5%. Cartier is not the first luxury brand to raise prices in 2022, as brands such as Herm è s and Louis Vuitton have previously announced price increases. In the past year, luxury brands such as Herm è s, Slytherin, Louis Vuitton, Dior, and Ferragamo have taken turns raising prices, and their luxury goods groups have also achieved varying degrees of performance growth. Some brands indicate that the price increase is related to the rise in global manufacturing and transportation costs, as well as fluctuating monetary policies. However, in the eyes of industry insiders, the reason for the price increase of luxury goods is far from being so "simple".
Cartier is going to raise prices?
The staff of Cartier SKP store told the Beijing News Shell Finance reporter that the price increase this time is about 4%, and there is currently no specific notice of the price increase time.
At the Cartier professional watch store in the Wangfujing Department Store, staff revealed that Cartier prices increase every year, and according to past patterns, there should be a recent price increase. However, the specific time of the price increase has not been announced yet, and the general price increase is around 5% -10%.
At present, the product prices on Cartier's official website have not been adjusted, and the product prices on Cartier's Tmall official flagship store are also consistent with the official website. In response to rumors of price increases for the brand, the staff of the flagship store said, "We have not received any notification of price adjustments at the moment."
As early as early as early April, netizens on platforms such as Xiaohongshu had already announced that Cartier was going to raise its price.
It is understood that Cartier rose twice in April and July last year, respectively. In July 2021, Cartier saw a price increase of approximately 200 to 2500 yuan, with the classic LOVE series diamond inlaid bracelet increasing its entry-level price from 79500 yuan to 82000 yuan. The new Tank Must entry-level watch series is 400 to 19200 yuan more expensive than the discontinued Tank Solo entry-level watch.
Price increases and performance increases
Cartier is just one of the luxury brands that has seen frequent price increases in recent years. Will consumers buy luxury goods that are experiencing price fluctuations?
Previously, rumors of Cartier's price increase had a certain level of discussion on social media platforms such as Xiaohongshu. Some netizens said that they quickly bought their previously desired jewelry after news of a price increase in Cartier. Some Xiaohongshu users in Japan have also reported that due to the rise in Cartier prices and the depreciation of the Japanese yen, some Cartier stores in Japan have experienced consumer queues.
Accompanied by the news of luxury brand price hikes, the three major luxury goods groups have previously reported new revenue highs in 2021.
In 2021, LVMH Group achieved a new high in revenue of 64.2 billion euros, a year-on-year increase of 44% compared to 2020 and a year-on-year increase of 20% compared to 2019; Net profit surged by 156% year-on-year in 2020 to 12 billion euros, an increase of 68% year-on-year from 2019.
