Quality has a cost, everyone agrees. On the other hand, some people are upset when they see that the prices of clothing and fashion accessories continue to increase. Particularly in luxury where they are considered excessive by observers of this industry. Thus, a study by the British bank HSBC, relayed by the Financial Times notes, for example, that the smallest format of the Speedy handbag, Louis Vuitton’s emblematic model, costs around 1,590 euros today, double the price displayed in 2019.
That of the 2.55, Chanel’s iconic handbag, has grown by 80% in five years. The two fashion accessories are characteristic of an expense that a person from the middle class in Switzerland can consider in these two French houses.
On the other hand, certain luxury ready-to-wear items are aimed exclusively at the wealthiest minority. Especially when a brand increases its prices. A figure in the fashion world known under the pseudonym Bryanboy, Swedish influencer Bryan Yambao published a post on Instagram last year (below) in which he criticized a rise that he considered exaggerated.
“In an American magazine, I saw an article about a wonderful Miu Miu coat (editor’s note: subsidiary of Prada) which I had fallen in love with at the fashion show. I thought I was having a heart attack when I discovered that it cost $6,000 plus tax (5,600 euros). Since when did a simple wool coat cost so much at Miu Miu? I think most brands should lower their prices.”
In an article from New York TimesLuca Solca, influential director of the luxury goods sector at Bernstein, an American financial analyst firm, recalls that, for high-end brands, the most important customers represent, in value, 40% of sales.
On March 26, the Diet Prada Instagram account, which denounces the failings of fashion players, tackled the subject (see the post below). “Luxury brands are aimed at an ever-smaller clientele. Who actually buys these products? In the United States, their sales continued to decline after the Covid-19 pandemic, according to data established based on transactions made with credit cards issued by Citibank.
Bruno Pavlovsky, president of the fashion division at Chanel, responds to Financial Times that the price adjustment in recent years is the result of inflation. It is also necessary because the Parisian house must position itself in relation to its competitors. “We are not looking to offer the most expensive products on the market. The economic context conditions our industry and, consequently, prices.”
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