Dior reassesses pricing: brand chief cites “overheating” in luxury market and effort to win back customers

According to Arnault, who has led Dior since February 2023 and oversees one of the key brands within the LVMH group owned by her family, the fashion house is entering a period of renewal. To strengthen the brand’s position, she previously appointed star creative director Jonathan Anderson in an effort to refresh Dior’s visual identity and halt declining sales amid a global downturn in the industry.

Speaking at the Financial Times Business of Luxury conference in Puglia, Arnault noted that the brand has become significantly more cautious about raising prices, particularly in the leather goods segment. “We are very attentive to pricing in leather goods. You cannot simply increase the price of a product without also increasing the perception of its quality and value. This is very important,” she said.

Arnault clarified that the iconic Lady Dior bag has not increased in price since 2023, apart from certain currency adjustments. She also noted that the first Dior pieces designed under Jonathan Anderson were quickly introduced into stores as early as January 2 this year, including more accessible price-point items, signaling a new direction for the brand.

In recent years, sharp price increases at Dior, Louis Vuitton, and Chanel have drawn criticism from consumers. According to consultancy Bain, some luxury goods have become up to 1.7 times more expensive compared to 2019. This has led to parts of the middle class exiting the luxury market, while even affluent customers have become more cautious with their spending.

Delphine Arnault also emphasized Dior’s special significance within the family-controlled LVMH group, noting that it was the first fashion house acquired by her father in 1985.