Louis Vuitton Could Become More Affordable: Analyst Suggests Lowering Handbag Prices

Luxury analyst Luca Solca of Bernstein has suggested that Louis Vuitton reconsider its pricing strategy and introduce handbags priced below the popular Neverfull, which currently costs around €1,550. In his view, this could help the brand attract a broader audience as the global luxury market slows.

The average selling price of Louis Vuitton products is around €2,200, which, as Solca points out, puts the brand out of reach for a significant share of consumers who want to buy luxury goods but spend less than €1,500 a year on them, WWD reports.

According to the analyst, the market has faced rising prices, slowing demand in China, inflation in the United States and economic uncertainty in Europe since the pandemic. As a result, the mass segment of luxury consumers has weakened.

Solca believes Louis Vuitton has significant growth potential if it lowers its entry price point somewhat. He suggests a possible price range of €1,300–€1,400.

As an example, the analyst points to Gucci, which recently introduced more substantial price cuts on some models. According to Solca, this led to a noticeable increase in price sensitivity among consumers. Thanks to Louis Vuitton’s strong brand position and consistent product quality, the potential effect could be even greater: a modest reduction in average prices could be offset by higher sales volumes.

Solca also points to Chanel, where newer, more streamlined handbag designs can cost thousands of euros less than the brand’s classic quilted styles. In his view, the introduction of new models can sometimes reflect a deliberate adjustment of a brand’s price offering.

However, lowering prices also carries risks. Too much emphasis on more affordable products could saturate the market, weaken the brand’s exclusivity and train consumers to wait for new discounts.

For now, Louis Vuitton is focusing on increasing the value of its products by adding extra pockets, experimenting with materials and creating reversible designs.

Solca expects Louis Vuitton’s revenue growth to remain stable but weak. At the same time, he believes it would be sensible for the brand to cautiously test more accessible price points as the luxury market becomes increasingly polarized.