
[Price Increases Among High-End Luxury Brands] Recently, a growing divide has emerged between high-end luxury brands and mainstream luxury brands. Like all other assets, a polarization is taking place. High-end luxury brands such as Chanel, Hermès, and Cartier are performing exceptionally well, while brands like Burberry are seeing steadily declining sales—and quite a few brands have disappeared entirely. In response to this trend, high-end brands are implementing substantial price increases. Typically, prices are raised twice a year—by as little as 5% or as much as 15%. It seems they’re deliberately stoking the sentiment: “If you’re going to buy it, buy it now!” My wife and I often joke about it: “If you’re going to buy it anyway, better to buy it now.” Just how far will these increases go? Or will high-end luxury become a world entirely of its own?
