Dior chief executive Delphine Arnault confirmed the French luxury house is reassessing pricing strategies as the sector works to regain customers alienated by steep price hikes. Speaking at the FT Business of Luxury conference, Arnault emphasized that price increases must align with perceived quality improvements, particularly for leather goods.

Arnault, who oversees the second-largest LVMH brand, appointed Jonathan Anderson as creative director last year to revitalize Dior's image amid falling sales. Anderson's sixth collection debuted in Los Angeles, featuring lower-priced offerings that entered stores in January. The brand has kept Lady Dior bag prices stable since 2023, except for adjustments in devalued currencies.

Luxury price increases of up to 1.7 times since 2019 have driven middle-class shoppers away, according to Bain consultancy data. Anderson argued the industry has lost sight of human craftsmanship value, referencing recent labor abuse scandals that prompted Italian investigations. Dior's probe closed without establishing violations after the company agreed to remedies.

The pricing caution reflects broader industry challenges as wealthy consumers also pull back. Arnault, whose father acquired Dior in 1985, faces pressure to balance exclusivity with accessibility while maintaining the brand's prestige position within the LVMH portfolio.