Global fashion brands raise prices due to tariff storm

A Louis Vuitton store in Suzhou, China in 2023 - Photo: The Paper

Faced with changes in global trade policy, including US-China trade tensions and retaliatory tariffs from both sides, many fashion brands from low-cost retail platforms to luxury conglomerates are adjusting their pricing strategies to adapt to rising costs and changes in consumer behavior in international markets.

Shein and Temu both increase prices in the US

Reuters news agency reported on April 17 that two Chinese cross-border e-commerce platforms, Shein and Temu, have just announced that they will adjust their selling prices from April 25.

In letters to customers, both Shein and Temu cited recent changes in trade and tariff policies as reasons for the increase in operating costs. According to both companies, the price adjustments are aimed at maintaining the current quality of products and services.

Shein and Temu did not announce specific increases, but they encouraged consumers to shop before the new prices take effect. According to current surveys, Shein women's fashion products are priced between $6 and $91, while Temu's items range from $2.48 to $210.

The move comes as the Trump administration's new tax policy is expected to directly impact low-cost imported goods into the US - a group of goods that accounts for a large proportion of both Shein and Temu's business.

Luxury goods are not exempt from tax pressure

Meanwhile, in China, brands belonging to the LVMH Group - typically Louis Vuitton and Dior - are adjusting product prices, which is considered part of a strategy to adapt to unfavorable developments in the global business environment.

According to the economic newspaper National Business Daily (China) on April 16, the financial report for the first quarter of 2025 of LVMH Group announced two days earlier showed that the group's revenue decreased by 3%, while analysts previously expected a 2% increase.

Revenue from the company’s key fashion and leather goods segment fell 5%, while revenue in the Asian market (including China) fell 11%, far exceeding forecasts.

Faced with pressure from input costs and exchange rate fluctuations, LVMH has adjusted prices for some products in China. According to an update on April 15 on Louis Vuitton's official website, the increase ranges from a few hundred to nearly 1,000 yuan, depending on the handbag model.

Meanwhile, Beijing News reported that Dior confirmed price adjustments from April 16, applicable to men's and women's fashion and handbag lines.

Although the brand claims that this price adjustment is a periodic adjustment cycle, some experts consider this a proactive measure to offset pressure from production costs, market fluctuations, and new tariff policies from the US.

According to the Securities Times (China), in a meeting with investors after the financial report on April 14, LVMH's leadership confirmed that it is considering cutting operating costs, including administrative and marketing costs.

Despite differences in segment and strategy, both Shein, Temu and luxury brands like Louis Vuitton and Dior are adjusting their pricing policies to adapt to global trade fluctuations.

US-China tensions continue to be a key factor, as Chinese goods could face import tariffs of up to 245% in the US, according to a document released by the White House on April 16. The rising price trend in both the low-end and high-end segments reflects an increasingly clear shift in global supply chains and consumer behavior.

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Source: https://tuoitre.vn/cac-thuong-hieu-thoi-trang-toan-cau-tang-gia-vi-bao-thue-quan-20250417161424487.htm