Hermès is following suit and raising its prices. The Paris-based design house, whose signature Birkin and Kelly bags retail from $8,000-$40,000, is set to increase its prices after increases by its rivals such as LVMH's Louis Vuitton (which announced a price increase in March) and Kering's Gucci earlier this year. Hermès, like Louis Vuitton and Gucci, said that as well as countering rising material costs, the move will mitigate currency fluctuations, such as the weak yen compared with the euro. "You can indeed expect price increases, which as always we want to be moderate," said Axel Dumas, who will take over from Patrick Thomas as CEO of the company when he retires next year. This follows an March 2013 announcement by Hermès that the company would not raise prices significantly in 2013.