Using two of Gucci’s best-known bags, the Dionysus and the Zumi, Jefferies compared the prices in various countries during the months of May and June. Allegedly, it found price increases of between 5% and 9% for both styles in Italy, China and the UK. According to Jefferies analyst Flavio Cereda, the change would narrow the gap between handbag prices in Europe and in major emerging luxury markets such as China. Nevertheless, Cereda said the price in euros of the Dionysus bag in China was still 28% higher than in Italy after the increase. The gap stood at 23% for the Zumi model. “We are unsurprised that Gucci, another brand with strong brand heat, is following suit with opportunistic price increases in an attempt to mitigate revenue contraction”, said Cereda in the report.

As reported by ILM, in May, Chanel announced it was increasing the price tags on its handbags and other leather accessories as a result of a rise in the cost of raw materials due to the Covid-19 pandemic, including the 11.12 and 2.55, two of its most recognisable leather flap-front, chain-strap bags, and other small leather goods by between 5% and 17%.