Hermes Plans To Adjust The Price Of Its Products In 2023

According to the insiders, Hermes will start to adjust product prices on December 15, mainly focusing on handbags, with the increase of goods between 6% and 12%, and will finally complete the price adjustment of all products before January 1.

According to public reports, Eric du Halgouet, the executive vice president of finance of Hermes Group, said in an interview with the media at the end of October that Hermes planned to adjust the price of its products by 5% to 10% in 2023. Exchange rate fluctuations and rising production costs are the main reasons for the new round of price increases.

At the beginning of November, it was reported that the price of "Mini Kelly", which was recognized as the most difficult to buy in the industry, would rise again by about 20000 yuan at the end of 2023, and the final price would approach 100000 yuan. In the second-hand market, the price of this handbag has also soared, with the latest transaction price of 250000 yuan, which is three times higher than the price in 2019.

For luxury brands, "price increase" is almost a "designated action every year" - on the one hand, to cope with the pressure brought by rising costs; On the other hand, the gap between middle and low-end products is widened by increasing prices. It is the consistent practice of Hermes to increase the price on January 1 every year, and the range is generally between 4% and 5%. In addition, Hermes will also make irregular price adjustments at the end of the year:

At the beginning of 2022, Hermes will complete the annual price increase. The price increase of accessories such as scarves will be about 10%, and the price of popular handbag Lindy will also rise to 59600 to 65300 yuan.

In December 2022, Hermes will start the price adjustment for the new year, ranging from 5% to 10%. The price of electric sandals will increase from 6800 yuan to 7150 yuan, and the price of Egerie sandals will also increase from 2400 yuan to 2650 yuan.

In January 2023, Hermes will continue to open a new round of global price increase, in which the price of the popular handbag "Kelly to Go" will rise by 10000 to 47900 yuan, up 28.4%, setting a new price rise history for Hermes.