The luxury bubble seems to be bursting at the seams as prior to this, price increases were the norm. However, at the end of 2023, we are seeing a peculiar change happening in the luxury segment. For some who collect these items, they would see it as an investment. This is only true to certain brands like Hermes and Chanel.
The luxury segment saw a massive growth during the 2020 pandemic. Unfortunately, they foresee it as something that should increase their prices. According to TaylorWells, one of the ways these brands offset their rising costs due to inflation is to price increases. This is one of the ways for a business to keep costs low and sustain profitability.
Brands like Chanel have increased the prices of their handbags astronomically. This is utterly dependent on the specific brand as you could get a literal handbag from Louis Vuitton for $1,760. Following that, the same amount of money can barely get a pouch, not even a handbag from Chanel that costs $2,550.
Are more luxury brands going to reduce their prices?
Luxury TikToker, @itscelesta states that Prada has reduced the prices on one of their most iconic bags, the re-edition crystal bag. She says that prior to this, it was $2,700 and now it’s $2,350. However, those who paid the higher price for the item would most definitely be upset towards the situation.
Following that, the comments suggest that these brands should reduce their prices more as it is getting out of hand. For the most part, talks about the “aspirational shopper” not being the preferred client for these brands are a popular opinion. An “aspirational shopper” is someone who buys these goods on special occasions but can’t afford to completely buy out the store.
Reuters states that the sales of LVMH brands are declining. The company wasn’t able to reach their target this year and it is concerning. The article states that the younger generation is just not that interested in luxury fashion as they would prefer thrifting or buying fast fashion items.
Others claim that people are moving away from consumerism and that is probably one of the reasons why the prices are reducing. Currently, there are two brands that have done this quietly, and with the current economic climate, we would have to wait and see what happens next.
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