Money bags: Louis Vuitton raises handbag prices - Telegraph.co.uk

Louis Vuitton to sell higher priced leather bags to compete with rivals Céline, Fendi and Givenchy - and big plans are afoot for the Marc Jacobs line

BY Stephanie Hirschmiller | 17 October 2013

With prices for Louis Vuitton's W and Capucine bags starting from £2,000 to £3,000, one might be forgiven for thinking that business was booming but as it turns out, the LVMH powerhouse has "slightly" underperformed other brands in the fashion and leather goods division such as Céline, Fendi, Givenchy and Berluti.

READ: Marc Jacobs for Louis Vuitton: highlights through the years ^[1]

So commented the brand's chief financial officer, Jean-Jacques Guiony in a conference call with analysts, reports WWD ^[2] . He was speaking regarding Vuitton's shift to selling higher-priced leather bags as opposed to its more ubiquitous monogrammed canvas versions.

SEE: 10 most expensive handbags you can buy online ^[3]

He stressed that this shift will not be "a three-week process," - principally due to supply challenges in quality leather - believe it or not, "a scarce resource".

READ: Marc Jacobs leaves Louis Vuitton ^[4]

And although, he refused to be drawn on succession plans following the departure of Vuitton designer, Marc Jacobs, on the subject of plans for Jacobs' eponymous brand, he was a great deal more talkative: "We have a major opportunity to develop this business further," continuing that "the opportunity in the contemporary market is very strong and we intend to benefit from that."

In the world of luxury, every cloud has a silver lining…