Stéphane Bianchi, Deputy Managing Director of LVMH, the world's largest luxury group, is committed to the resilience of its model in the face of an uncertain geopolitical environment. Bianchi has assured that the French company still has room to raise prices on its high-end products without compromising demand.
The Deputy Managing Director explained that: "we can increase prices between 2% and 3% annually," he said in a press conference on the impact of possible tariffs, as Reuters explained. The executive cited the case of fine jewelry as an example, where customers are willing to absorb moderate price increases.
However, Cécile Cabanis, CFO of LVMH, has made it clear that this price increase will not be applied in categories such as beauty because it does not offer the same flexibility. Cabanis explained that, in this case, the beauty segment is highly competitive and with greater penetration in the mass channel and limits room for maneuver.
Although the French luxury conglomerate admits to looking at the Chinese market with uncertainty, it breathes more calmly. "We detected the first positive signs. While tensions remain on the table, the climate will be complicated."