Can fashion continue to inflate your prices?

We had only a few months of pandemic when we discovered that some of the big luxury brands were increasing their prices.Chanel, for example, rose in March last year the price of his bags between 5 and 17%, an operation that repeated in October by increasing 5% more.

What sense did it have to in the middle of the crisis, at a time when the rolls of toilet paper were our great purchase, the figures of the luxury brands would shoot?Was the high range cavando its grave or was a diamond ladder building with that gesture?“As in all luxury firms, we regularly adjust our prices to adapt to production costs and materials, as well as currency changes.At a time like this, the price of some materials, which were already complicated to get for their quality, has risen again, ”explained a brand spokesman.But why do luxury customers respond favorably to these constant increases?

To begin, because many found themselves in a situation in which restaurants and trips had no place, so they found in luxury a place to spend their money.Nor should we forget that it was during confinement when once again, mythical bags, such as Hermès's Birkin, behaved again as the best investments, so buying bags and luxury designs proves to always be an intelligent investment whose figures do notThey stop going up.For their part, the big firms must maintain results, so if sales go down, the prices of their products upload.Why, despite doing so, are sold?Because it's about the so -called 'Veblen's goods'.We talk about an economic term whose demand curve increases its price and, despite doing so, see how the demand rises in the same way to be luxury items, whose consumers perceive that, given a greater price, they face a more exclusive product.

That explains that, as indicated by data from Bernstein and Deloitte, Prada prices have risen 13%, those of Louis Vuitton 10% and those of Balenciaga, 8%.

Much more than bags

Although the bags have always been responsible for maintaining the sales of large brands afloat, the truth is that they are not the only ones that inflate their prices.Sports have become one of the most desired accessories in the industry and are already large investments capable of tripling their price at auctions.The shoes, like the luxury firms t -shirts, are now in charge of giving the entrance keys to a new clientele that wants to enter the Deluxe market, that one that was previously accessed by sunglasses and perfumes.

That is why now the entrance prices are higher and, in turn, these products must be more elaborate, therefore with departments commissioned only to them.The new clientele is more demanding and has greater knowledge, so the products with which it enters this new market are in turn more exquisite and, therefore, expensive.Actually, the one who buys luxury does so for design, quality and materials, but above all for being part of a social network and a superior spectrum.This is where brand ambassadors and influencers come into play, those that so many times ask us why they promote products that we sometimes believe do not fit their followers.If they say that these designs are worth it, they are giving reasons to those looking for luxury designs to bet on those instead of others.In the end, prices are put by the market, but above all the customer, the one that seeks to pay a lot to be part of an exclusive ranks that are part of only those that make up that tiny percentage that nourishes those who can pay their astronomical figures.