LVMH Signals Selective Price Increases but Holds Back on Beauty Products
French luxury giant LVMH has indicated it has pricing power to raise the cost of its high-end products by about 2–3% annually without dampening demand, according to Deputy CEO Stéphane Bianchi. The post LVMH Signals Selective Price Increases but Holds Back on Beauty Products appeared first on Global Cosmetics News.
THE WHAT? French luxury giant LVMH has indicated it has pricing power to raise the cost of its high-end products by about 2–3% annually without dampening demand, according to Deputy CEO Stéphane Bianchi. However, the group’s executives note that such increases are less feasible for its cognac and beauty categories.
THE DETAILS Speaking before the French parliament, Bianchi pointed to high jewellery as a segment where ultra-wealthy clients can absorb modest price hikes, though he warned that elasticity has limits. LVMH Finance Chief Cécile Cabanis emphasized that lower-margin sectors like cognac and beauty products lack the same pricing flexibility. Despite recent shifts in Chinese consumer behavior and ongoing trade tensions with the U.S., the company remains committed to investing in China and has observed early signs of U.S. demand recovery.
THE WHY? With global luxury demand under pressure from geopolitical risks and shifting consumer patterns, LVMH is navigating its pricing strategy carefully. While its top-tier products can bear moderate increases, beauty — a more price-sensitive category — requires a restrained approach to maintain competitiveness and protect volume in key markets. Strategic pricing decisions will be crucial as the group balances growth, profitability, and external challenges like tariffs.
Source: Reuters
The post LVMH Signals Selective Price Increases but Holds Back on Beauty Products appeared first on Global Cosmetics News.
