It is said that prestige labels may have grown used to raising prices without much resistance, but that momentum is slowing. The era of automatic markups may be giving way to a more cautious, buyer-sensitive approach.

High-end brands are beginning to ease off on price increases after years of upward momentum. Companies such as Chanel and Louis Vuitton have been more measured with their pricing in 2023 and 2024, especially in regions where shoppers are growing more cautious. This follows a period during the pandemic when luxury prices rose steadily. While the sector overall remains healthy, the pace of price hikes is now slower, a shift that reflects changing consumer behavior and growing pushback.

Key takeaways from the article:

• Slower price growth: Chanel, Hermès, and Louis Vuitton have applied more moderate or paused increases in 2023–2024, especially in Asia and Europe.
  
• Consumer resistance: Some shoppers are beginning to delay purchases or express concern over perceived value, especially when quality and materials remain constant.
  
• Regional price sensitivity: Markets like South Korea and Japan are showing signs of fatigue, while Chinese buyers, once known for their willingness to pay a premium, are becoming more cautious.
  
• Customer feedback matters: Analysts suggest that luxury buyers are now more vocal about their expectations. Pricing decisions are increasingly influenced by online sentiment, peer reviews, and market mood.
  
• Luxury still holds value: While price growth is softening, most shoppers haven’t abandoned high-end purchases altogether. The desire is still there, just with a sharper eye on justification.
  

As luxury goods become ever more exposed to global consumer scrutiny, brands are finding themselves in a more delicate balancing act: maintaining exclusivity without alienating loyal buyers.

Brands need to learn how to read the room, paying closer attention to how and when they raise costs. While exclusivity remains a cornerstone of high-end fashion, today’s consumers (empowered by information and digital access) are more likely to expect transparency and logic behind pricing. The message is clear: value still matters, even at the highest levels of retail.

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SOURCES: CNA LUXURY, FINANCIAL TIMES