Delphine Arnault, Chief Executive Officer (CEO) of French luxury fashion house Dior, has announced a reassessment of pricing policies for certain products.
Dior wants to win back its customers, emphasized the brand boss at the ‘Business of Luxury’ conference organized by the British newspaper Financial Times. These have been deterred by the sharp price increases in recent years.
“We are working hard on our range of leather goods and are very careful when it comes to pricing,” explained Arnault in her speech. She added: “You can’t increase the price of a product without increasing the perceived quality. That’s a key point.” To illustrate, the management explained that the price of the ‘Lady Dior’ bag, one of the best sellers, has not been increased since 2023. The only exceptions were adjustments due to the devaluation of two currencies.
Creative renewal as a motor for recovery
This price restraint is part of a comprehensive strategic realignment. Last year, the fashion house named Jonathan Anderson, Loewe’s former creative director, as artistic director. It is intended to revitalize the brand’s image and counteract the decline in sales in a generally weak sector. Last week, the designer presented his sixth collection for the brand and his first cruise show in Los Angeles.
Jonathan Anderson’s first designs for the house hit boutiques on January 2nd. According to the Financial Times, this first shipment deliberately included several items at more affordable prices. This was intended to concretely illustrate the new aesthetic and the further development of the brand’s business strategy.
Hyper-luxury has its limits
Dior’s initiative highlights the limits of hyper-luxury and price hikes practiced in recent years by many brands in the industry, such as Louis Vuitton or Chanel. These increases have pushed out even wealthy consumers. This includes aspiring customers, fashion enthusiasts with good incomes, and occasional visitors to a brand they admire. The result: several major fashion houses reported declining demand. But things are changing. This is shown by both the Dior CEO’s statements and press reports about a price revision for the Kering Group’s brands.
The decline in prices and the introduction of more accessible pieces show that the industry is thinking about reorienting its offering. The market is moving away from price bragging and moving closer to authentically perceived value. Although the prices are still high, they are justified by the production conditions. Luxury companies are increasingly emphasizing craftsmanship.
This article was created using digital tools translated.
FashionUnited uses artificial intelligence to speed up the translation of articles and improve the end result. They help us to make FashionUnited’s international reporting quickly and comprehensively accessible to a German-speaking readership. Articles translated using AI-based tools are proofread and carefully edited by our editors before they are published. If you have any questions or comments, please email [email protected]
