The changing purchasing habits of Chinese consumers have also driven the luxury price rises. Over the past few years, Chinese consumers have increasingly travelled to Europe to buy goods, because of the savings they can make on tax.
Price rises have reflected this habit, with goods in Europe rising by more than those in mainland China. Luxury goods in Paris saw annual price rises of 4.2 percent between 2012 and year-to-date 2014, for example, while products in Shanghai rose by only 1.6 percent.
As a result of price hikes in Europe, the savings Chinese could gain from shopping abroad had fallen to 26 percent by March 2014, down from 35 percent in July 2012.
Mixed views on price rise gains
While higher prices will improve some brands' margins and revenue, analysts are unconvinced that every brand will reap the benefits.
Rahul Sharma, managing director of Neev Capital, warned that price hikes had already proved detrimental to certain upmarket brands.
"Every year it is fair to say that the sector has pricing power and it flexes it. The key thing I would say is that they have had really big price increases since 2009, and for some brands, like Mulberry, it has blown up," he told CNBC in a phone interview. "Not every brand can keep increasing prices. Some have the brand equity."
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France's Hermes has been one of the most aggressive brands in hiking its prices, along with Louis Vuitton, known for its iconic "LV" print. They have been followed by Richemont and Gucci.
"The likes of high-end brands such as Hermes and Chanel have no price resistance and consumers lap it up. The jury is still out on brands like Gucci," said Sharma.
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In terms of products, handbag prices rose 6 percent year-on-year between 2012 and year-to-date 2014. Jewellery prices rose 4.5 percent in the same period.
Experts said the rise in prices was as much about retaining brands' exclusivity as driving margins.
"We do see companies pushing prices up to reclaim that exclusivity," Anusha Couttigane, fashion consultant at Conlumino, told CNCB in a phone interview.