全球奢侈品：定价差异

Global Luxury Goods: Pricing Divergence Luxury goods brands have taken divergent pricing strategies over the past year. Softluxury pricing post-Covid-19 accelerated well beyond the typical 5-7% range, and movedwell into the double digits. As post-pandemic euphoria is gone, soft luxury brands haveto deal with consumers struggling with the new pricing environment. Brands are dealingwith this problem in different ways, as a function of their momentum and their exposure to Luca Solca+41 582 723 126luca.solca@bernsteinsg.com Maria Meita+44 20 7170 0540maria.meita@bernsteinsg.com Eric Chen, CFA+852 2123 2628eric.chen@bernsteinsg.com Innovation drives brand heat and enables higher prices.The hotter the brand, thehigher its pricing power. There is virtually no value for money question for luxury goodscustomers when they are sold a dream. Chanel (private) has understood this, which is howthey pushed their prices sky-high. Chanel RTW is almost 80% more expensive than the nextbrand we analysed, and that is excluding all the ‘price upon request’ items. Bags rank belowHermès as a result of the lower-priced newness, but still average €6.3k. Despite all this, Yi-Peng Khoo, CFA+44 20 7676 6822yi-peng.khoo@bernsteinsg.com Specialist Sales Alix Turner+44 20 7762 4044alix.turner@bernsteinsg.com The larger the brand, the more it uses category expansion to reengage with themiddle class.Louis Vuitton is using beauty as both an acquisition tool and a brand elevation tool. While it is priced below peers in key categories such as bags or dresses, itis the most expensive when it comes to beauty. La Beauté Louis Vuitton was launched inAugust 2025 and was priced, like their fragrance line, at a 3x premium to sister brand Dior(at €140 per lipstick). Meanwhile, at Chanel and Dior entry-level products such as beauty Brands with weaker equity or momentum are forced to adjust mix downwards.Atthe bottom of our pricing pyramid and momentum analyses lie Gucci and Burberry. Bothbrands are resurfacing from failed turnarounds where pricing was pushed too high, withoutthe momentum to sustain it. As a result, Burberry has gone back to basics – doubling downon accessories like scarves and their iconic outerwear, priced at €2k on average (-56% High-end specialists are marginally less expensive than mega-brands.Investorsare concerned that both Cucinelli and Zegna have exaggerated with their price increases.Yet, both Cucinelli and Zegna offer below-average pricing when compared to mega-brand peers. Even when it comes to knitwear, Cucinelli is priced -16% below average inwomenswear and -6% in menswear. Similarly, Zegna is priced on average -8% below BERNSTEIN TICKER TABLE INVESTMENT IMPLICATIONS The trajectory of a recovery in global luxury demand remains uncertain. We find two sources of volatility at play: a) underlyingdemand gyrations, as consumers navigate a fragile macro-economic environment and a tenser and tenser geopoliticalenvironment; and b) short-term investors playing the sector long and short, amplifying upswings and downswings beyond 1)We would prefer high-quality names “at fair value”...Richemontis our top preference due to strong jewellery momentumand leadership, withBrunello Cucinellialso favored for their quality and potential mean reversion. It is difficult to be positiveonHermèsin the short-term, but one weak quarter can be forgiven by the market, if they return to high single digit growth 2)...as well as the self-help stories with more promising trajectories.LVMHsits between high quality and self-help. Lingeringconcerns around the W&S turnaround and the Arnault family’s ‘Darwinian’ succession process are counter-balanced by Dior’srevival, cost efficiencies, and Louis Vuitton’s strength; Turnaround atBurberryis well on track. One-year anniversary of theBurberry Forward strategy has paid off, in the form of improved brand momentum and stronger full-price sell-through. With asolid foundation in place, the next leg of the turnaround will see focus shifting to driving store productivity, by capitalizing on the DETAILS Luxury goods brands have taken divergent pricing strategies over the past year. Soft luxury pricing post-Covid-19accelerated well beyond the typical 5-7% range, and moved well into the double digits. As post-pandemic euphoria is gone, softluxury brands have to deal with consumers struggling with the new pricing environment. Brands are dealing with this problemin different ways, as a function of their momentum and their exposure to aspirational consumers. We deep-dive into the latest Innovation drives brand heat and enables higher prices.The hotter the brand, the higher its pricing power. There is virtuallyno value for money question for luxury goods customers when they are sold a dream. Chanel (private) has understood this, whichis how they pushed their prices sky-high. Chanel RTW is almost 80% more expensive than the next brand we analysed, and thatis excluding all the ‘price upon request’ items. Bags