(Yicai Global) Aug. 25 -- International luxury brands such as Louis Vuitton, Chanel and Tiffany & Co. are thought to be preparing to combat slowing sales by raising prices yet again. Consumers in China have responded by forming lines outside their upscale outlets. 

The Chinese mainland's largest Louis Vuitton store in Shanghai expects sales of CNY150 million (USD21.7 million) this month, nearly double the usual level, the Paper reported yesterday, citing shop assistants. Prices are likely to go up next month after Chinese Valentine's Day is celebrated today, they added.

Staff at the Plaza 66 store of Louis Vuitton, which opened in 2017, told the Paper that they had heard about pending price hikes, but had not yet received formal notice of them. They envisage price rises of between 5 percent and 10 percent. 

Lines have formed outside luxury goods stores, a rare sight after many boosted prices in May. Louis Vuitton, which is part of Paris-based conglomerate LVMH, has increased prices twice so far this year. It usually makes adjustments just one or two times a year. Various brands have done so at least once this year. 

Luxury retailers, including Louis Vuitton, Chanel and Tiffany, will lift prices in the Chinese market next month, state media reported earlier, citing speculation on social media.

Higher prices may be linked directly with the Covid-19 pandemic. Worldwide sales of high-end handbags, clothing and cosmetics fell 25 percent in the first quarter, according to Bain & Co. This year, global luxury revenue is likely to fall 20 percent to 35 percent from a year ago and may not return to 2019 levels before 2023, the consultancy said.

But China's luxury goods market will recover before the rest of the world and even gain about 10 percent this year, Boston Consulting Group said in a recent forecast.

The Chinese mainland has been the main growth driver of the global consumer sector in recent years. Spending on luxury goods totaled as much as CNY170 billion (USD24.6 billion) in 2018, according to Bain. Including their overseas spend, Chinese shoppers make up 33 percent of global luxury goods buyers.

Editor: Emmi Laine