Are Luxury Price Rises BACKFIRING? Here's the Proof!
Вставка
- Опубліковано 27 січ 2024
- MY JUMPER
bit.ly/48TjcXE
Use code: SophieS15 for 15% off everything
(Not affiliate paying)
*********************************************************************
//DISCLAIMER:
This video is not an AD/Sponsored. Affiliate links in use, any links that aren’t affiliate will have ‘Not affiliate’ written alongside.
![[UPDATED] My Story: How I ESCAPED £40k In DEBTS (University - Scam?)](/img/n.gif)
I couldn’t afford luxury when I was younger. But then multiple promotions and raises at work made it possible. Since I spent years being so careful with money, I’ve gotten a little tinge of anxiety when completing a purchase. Now with the price rises, I’m just unmotivated. I’d rather spend that money on travel. If more people feel like me, these brands are losing a consumer base and will only be left with wealthy customers with money to burn. Is that a large enough customer base?
I completely agree, at one point i would have dropped money for a Chanel flap but now ironically that i have the money the thought of spending £8,000 makes me feel sick to my stomach! I have instead invested in a law degree and travels!
@@claudipereira6729 Two wise choices!
A bag shouldn't cost as much as a master's degree, should it? @@claudipereira6729
Same.
same! when I think about the kind of holiday I could be financing with that money it makes me cringe. I could probably travel 3-4 times with that money. Like, no, no way. I would prefer to make new memories than dropping that kind of cash on a piece of leather where I just put my purse and keys in😅
I used to buy good quality pieces, my favourite being Chanel. I was in Harrods at the Chanel store before Christmas. I couldn't believe how rude the staff were when I was asked about the materials in the item I was looking at purchasing. I had an older version of the item and I noticed it wasn't as good quality. I was a customer of chanel for 3 decades. The obvious reduction in quality, the price increase and the attitude of the staff have ensured I won't be a customer of their's any more.
I don’t own a Chanel bag. I have a few of their shoes. I have always thought the quality was in the bags.
I work with interiors and high end furniture,people buy brands for their homes all the time and the sellers offer all sorts of support and information about the product(even offer support from their engineers/designers architects if needed),while these basic shop sellers are too pressed to even offer basic info about a damn bag.😂I swear Chanel&LV SA’s need to touch some grass and realize they are not as vital to our society as they believe themselves to be🙃
I'm not a luxury bag buyer (I have a preloved Puzzle, but otherwise, my bags are mid level), but good service is something I value very much. If I receive bad service, I won't be back. It doesn't matter if it's my local supermarket (ours has excellent service) or an exclusive store. One of my favourite bag brands is Danish brand Decadent, they have some of the best service I've encountered, even to the extent that they made an extra bag strap for me, an item they weren't actually selling separately at the time.
Chanel quality is trash have not brought anything since 2019 .. the bags are not worth it just invest that money and save
I used to buy Chanel too but I stopped as soon as everyone and their dog started buying it. I’ve noticed the way they treat their customers now and I’m appalled that so many people are demoralized enough to tolerate it. The lining up like cattle outside the store was absolutely laughable.
I am not buying their bags to prove I can afford them. Luxury brands are no longer luxury to me. A nice trip in first class with my family, creating memories…now that’s true luxury to me.
I used to work for a celebrity orthodondist in Italy who regularly hiked his enormous fees to prevent lower to middle class clients from accessing his services. He was quite gleeful in telling me that. I was disturbed.
What a horrible person.
Well that’s not saying much. Have you seen how these celebrities look lately? Fake face, fake teeth fake fake fake…they can have him.
@@sophiaelayne9984 I was watching some love luxury vlog, is a shop here in london, they have everything authentic, bags. clothes, jewellery, but when comes to there faces there is nothing real lol
The CLASS SYSTEM is alive and well, isn't it. Well, I'm older now and don't give a hoot about luxury bags or shoes.
These price increases make me not wear most of my luxury items because it’s embarrassing tbh. To me, I feel like I either come across as bragging by wearing them or stupid for buying something so overpriced for the quality….even tho everything I bought was either pre loved or older than 2022
The irony is that due to the rising prices, many people are buying knockoff bags instead of the actual brand. The market is flooded with replicas, causing the value of luxury bags to decline, and consequently, no one wants to buy them anymore."Moreover, there are many brands that are much smarter, with much higher quality, without flashy and prominent logos, and their bags emit luxury. Many of them are priced around 500 euros.
Great points!!!xx
Yup, mid range all the way or some good quality pre loved vintage. I still want a Diana bag from Chanel. If I can get it I’ll buy it in Japan this year. If not, no sweat.
And even though I can afford it, there is no way that I’ll spend that kind off cash for marketing and crappy quality. I’d rather invest in my house, stocks and some travels.
And on top of this your $200 replica will be better quality than 10k Chanel 😂😂
@@patkat8467indeed ! There are identical replicas of better quality out there . Don’t know as much about Chanel, but LV’a quality has gone to hell lately !
I like mid range bags and spend the rest on a holiday 😂. I no longer buy luxury
I can afford the new prices but I am so sick of luxury goods. Same things in different colors every season. Social media is another repellent. Unboxings, showing off closets,...etc. I just want to buy unique, different styles. Indi brands, new comer small brands with new visions. I really appreciated this video. Thanx Sophie 💗
Same, especially jewelery. I am so sick of seeing the same jewelry peices on literally every single person. Van Cleef, Cartier, you know exactly what I'm talking about. It's so boring. If I'm spending $6k on a pair of earrings they're gonna be works of art not found on every single influencer
@@carlyofearth So true, and they call it being inspired by these “Influencers”. Copy-paste fashion…
Same!! I dont like looking like everyone else...
I cannot yet, but even now I aspire to support small brands, artists and stores more than these big brands. And when the point comes I could afford it, I know I still will prefere quality, unique style and craftmanship over copy-paste-style.
Even Cartier love bracelets are getting boring 😂 see it everywhere, same as other branded popular jewelry, it’s losing its wow factor once u spot it everywhere, not special anymore 😂
Price increases are the only reason why I don't buy as many designer goods as I used to... It's not really that I can't afford it, its mostly just because there is a limit to what I am willing to spend on a leather/canvas bag.. In my opinion, $10k for a bag does not feel rational, I would almost feel taken advantage of by the brand if I ever spent that much on a bag that very conservatively cost less than $400 to make... Funny enough, Chanel doesn't feel desirable to me anymore, like I even sometimes forget the brand exist...
YES!!!! I totally feel you! I use to want a Birkin sooo bad and my friend gave me her mom’s old bag and once I got it, I realize I hardly reach for it. So spending all that money would’ve been such a waste should I bought brand new. I’m a huge bag person and I found that after last year being my “No Buy” year and the price increases, I just don’t have the interest to spend the money. I have the silhouettes I like in functional colors not to mention the fact that my favorite designers haven’t come out with a new bag style or color that would make me spend $3K+
I can afford the price rises. But I don’t want to support this gouging practice on top of the fact quality is horrible and getting worse and worse. I’ll stick to vintage.
Also them pricing out the middle class is just fueling the counterfeit market more and more.
well, I feel a company can charge whatever they wish. BUT, I believe it is horrible that the quality is going down. If a price goes up 25%, I expect the quality to stay at least the same? Plus, much like jewels, some people will have the bag as an investment. But they will take a counterfeit for use. You don't go out wearing the real jewels or the real bag.
I completely agree, buying from brands like these sends a message that it is okay for them to have these crazy price increases and encourages them to continue doing so. Of course, price increases are normal but not at the extortionate amount with which e.g. Chanel did. With crime rates through the roof as well in London, many of the affluent crowd are now selecting other quality and more discreet bags like Salvatore Ferragamo, Tods and Loro Piana. I personally prefer bags from launer, lalage beaumont and savette as you get true value for money as the quality is exceptional and very reasonable for what you are paying!
So true
@@kittymervine6115then why have these nice things if you don’t use them!
Yeah. I prefer LV 80' 90'. Better quality
I find it hilarious that luxury brands like Chanel and Dior have been raising their prices to cater to more exclusivity because of the “flood” on SNS when THEY repeatedly sent/send bags for *FREE* to influencers for promo/marketing 😂😂😂😂😂 they created their own “problem”
As for Lux buying- here in Tokyo there’s a HUGE slow down at foot traffic into the stores. Especially compared to same time of year just 2 years ago when borders opened to tourists. I don’t see queues anymore outside Chanel or Hermes and YSL and Balenciaga is always empty every district I go.. including Ginza.
This!! Sending free bags to people that can afford it is crazy to me but treating the people that go into your store horrible that never made sense especially if those workers get paid minimum wage and can’t afford the items themselves
I was staying in a hotel close to Chanel store in Ginza during Christmas period last year for a week, I was shocked to see queues outside Chanel every time I walked past the store.
Fellow Tokyoite! Balenciaga in particular is always so empty 😂
@@Tttxxxjgood😤
VERY Interesting!Thx for sharing!
I am a former LV corporate office staff member. The reality is just the company is greedy, and they don't want people of lower classes buying their products. Outright. So when social media influencers say LV is marketed towards the poor, that's false. We were discouraged from focusing on lower price point canvas, and push high end leathers and exotics.
I have owned numerous LV items. The company is trash and has absolutely no regard for customer base. The quality has dropped and just the idea that I’ve invested any time into that company pisses me off to be honest. This is why I encourage replicas in protest. I appreciate your honesty on this.
@@babebee2968 LV, as a concept is great. It does legitimately have an incredible history. But today, I agree with you. We were discouraged from selling canvas only as a company directive, production slashed, and lower price point items either discontinued, or massively over charged, and commission for sales people on canvas slashed to below 1%. If someone was a high roller, they did receive the red carpet. If someone wasn't at least spending 15k a year, consistently they were considered "core clients".
That confuses me, because the only people I see with LV bags are either average or low class.
@@revenge0lobster Yeah, people are eager to try to fit in. Canvas only people are looked down by the company. They want people to buy the higher end leather. Commission is almost non-existent for canvas bags.
I think LV knows they are targeting celebrities and the lower and middle classes. I’m assuming that’s why they approximated Pharrell Williams as their new creative director
I stop buying luxury bags last year seems the prices are too high for the average quality of the bags
I know what you mean! Thank you so much for watching my friend xx
Agree! The shoddy quality is insulting. But even for the luxury bags with good quality, the price levels have reached a “what am I doing?!” level. I may be able to afford it but I’m forced to think what that cost really represents. A non-durable good sold for 400,000x its cost to produce (exaggerating..for now)? That’s not Fun anymore. I had just gotten into designer bags during the pandemic & I feel stopped cold.
Sophie’s right, at some point even the billionaires will feel stupid being overcharged like this. But it seems there’s always a customer somewhere! 🤦♀️
I am really just like you! In the beginning of lockdown during the pandemic i really got into designer bags. And when Sophie said she has a tiny designer bag, just for going on walks during that time, i ordered my first MCM bag, just for walks. Then a few other luxury bags. I can afford them but i am starting to feel stupid, paying this kind of money. For my Christmas present to myself last month i made a big donation to IFAW, the global organization supporting the animal shelters in Ukraine, to help all the animals who lost their homes and their pet parents with the war going on there. MUCH more satisfying than another bag.
I too can afford luxury bags but I just feel foolish now buying a luxury bag for a small fortune just so ppl can look and say wow she is xxxx.? The quality is not worth it at all!
Agreed. Kept one. Sold everything else
Honestly, looking at the prices for groceries in addition to the uncertainty of mortgage/rent prices and interest rates. I can't stomach buying any luxury right now. I've started really thinking about where my money goes and I'd rather it go to my kid and securing him in a crazy world and making us more secure than lining corporate pockets. The price rises are absolutely absurd for products that are worse quality than before. No thanks.
This
Previous Kering exec here: for perspective the retail price was set on the avg cost to retailers (traditionally 50% ) sold with a minimum profit margin of 30%. Basically the cost of product was anywhere from 15-20% of retail. No longer getting a discount I can’t bring myself to buy luxury items at retail. Even crazier is that cosmetics have an even larger disparity. These brands are making money hand over fist. Now that many brands can no longer destroy product to maintain exclusivity things are gonna change…( you have no idea how horrible it feels destroy brand new gucci merchandise for no reason at all 😫 The greed of these companies is unparalleled!
Fun fact: The same Taurillon, Epsom and Swift leathers used by brands like Chanel & Hermés can just be normally purchased online for like €120-250 for an entire cowhide - which the brands get for way cheaper, not even taking into account taxes on purchases as private individuals.
(Tanneries Du Puy, Tanneries Haas, Remy Carrait etc.)
A Chanel classic flap would probably (an estimate from a hobbyist, not professional) only be like €250 in total including labour - the markups are getting insane
I saw a version of the Margaux bag made by a leather craftsman for $200. I’m considering purchasing. Bespoke purchases are luxury also and these price ranges of $5000 starting for handbags is becoming nuts. Especially if none of these bands keep value like Hermès.
@@tarreemhacaruso2687. 🙌🏻This is an amazing point! Would you mind Sharing the Name/Brand of the Craftsman you are considering.. its a Great n very appealing Concept n alternative♥️🙏🏻✨
So true. I bought some leather pieces, including exotics for really cheap price. I think I'll be making my own bag this year, instead of dropping another ££££😂
we should support smaller brands that produce quality for money.
@@tarreemhacaruso2687where did you find it? Completely agree on supporting small businesses. Luxury brand markups are out of control.
One of my bosses who has the dosh has refused to buy since the price hikes,she has gone classic and understated even supporting local dress makers in London and the country.
Unfortunately, because of price increases the second hand market is not that cheap anymore. I've seen second hand Chanel flaps selling for £5k or more. There's no way I pay that kind of money for a used bag.
No way would I pay that for any bag.
I know, right? I would love to know who is paying those prices.
Housing in the US is insane now. So less money going around. I started buying leather look-a-like bag DIY kits, some are top grain or full grain leather. They were only $100 a kit, took me 24 hours to sew together. I feel that for a $10k Chanel bag, it’s like $400 materials and $9600 branding.
Where would I find these kits?
I feel like many of these brands were exclusive before the middle class started saving for them. There was a reason they saw the growth they saw, and it was due to the middle class purchasing them. Now, they're pulling back. In one way this allows smaller, better-made bags to shine. In all honesty, I prefer to buy pre-loved as so many luxury goods look alike nowadays or are just ridiculous (i.e. Balenciaga trash bag). There is also the fact that people are becoming more aware of sustainability.
If you are rich and don’t care about prices, why not. For the practical ones, rich or not, then maybe pass on these items
Exactly my thoughts. Middle class worked hard to afford the luxury brands. I think, they just leveled up the game for middle class. Frankly speaking, I make enough money to afford a Chanel flap or an Hermes. But thinking of $12K for a Chanel vs $12K in the stock market or saved monthly in a high yield bank account... I mean, Chanel won't be able to buy me a house. I can't pay for food or flights with my Chanel bag. Chanel bag won't be able to afford my time with my family. To me, it's just not worth it. The ultimately luxury for me is knowing I can afford something but I choose not to buy it because it does not excite me.
Social media and the ubiquity of these bags have ruined the appeal. It’s the fact that some people have whole collections of classic flaps or Hermes - it’s gimmicky now.
Oh yes, you're right !!
The price rises have for sure changed my approach to how I would spend. Jewelry and watches have moved up the list, those are items I can wear everyday and it will last decades. Luxury shoes are less “sensible” to me as those wear down. Bags with the current prices are approaching this “not sensible” category and steer me toward other items. I mean, at the end of the day these are all not necessary items (beautiful!) but not necessary. Love your take on this Sophie and that you advocate for pre loved!
It may work if they can get the wealthy to buy more product. However, the drop in quality creates a great opportunity for newer brands to fill the void.
Thank you for highlighting that none of the items are a necessity! A factor which gets lost specially with all the social media. Having a £8,000 Chanel bag flap or a £10,000 Hermes bag is not 'normal' for the average person! I was with my affluent friend the other day and amongst the community even Hermes Birkin's and Kelly's are now being considered 'new money' and its losing its 'old money' and discreet status it once had (this is our thoughts - it's okay if you disagree!). Also what is up with influencers wearing Kelly bags at weddings? Its not appropriate, a discrete clutch is more formal. Its simply too much! What these brands once stood for has completely changed and i don't think they will ever get back to how they were pre-pandemic.
Same, increased bag costs and lack of quality have definitely made my watch collection grow substantially this past year or two. I work hard, and I’m a bit of a collector, but for sure not a necessity but would also be easy to sell on if needed.
Jewelry is such a better investment. People will always wear and buy jewelry, bags come and go with trends. I sell and collect jewelry and it’s what pays my bills
I still believe the middle class are the “meat and potatoes” of most luxury brands. If they continue to price us out, good luck to them all as they try to fight it out for the remaining 5% who are wealthy…🤨
It won't matter. Luxury is one of the few industries hardly affected by a recession. The reason is their consumer market is not affected by the recession. One person spending 10k on a bag is pretty much the same as 5 people spending 2k on 5 bags. I don't support what they are doing btw. I am just pointing out that the hopes of this backfiring on them won't help. Realistically, what they are doing will not backfire on them.
@@SummeRain783you’re right unfortunately. It was just wishful thinking on my part - ugh 😏
This the middle aka working class is spending thier money on these items when they have no retirement,precarious housing and unstable jobs.. this deck of cars can’t last forever it’s going to come down the people with money or brought things years ago when it s cheaper are not rebuying these things
@@helena3631 You are so right. The same goes for luxury cars. I know young people who have Range Rovers, but don't own property or have high-paying jobs, but everyone else has one, so they have to have it. Ridiculous! It's the same with the luxury market. Seriously, $6000 for a Cartier Love bracelet? Yet, every twentysomething seems to have one these days.
@@jennifermcgee8621I’m so glad you mentioned this! I literally see so many young girls with Cartier jewelry I always wonder how can they be affording this?
I just bought my first (small) luxury bag from Coach during a sale. That's still a lot of money for me, but the price for the quality is really good, in my opinion. After seeing some of the quite frankly shocking quality of the big luxury brands, I can't fathom spending more than Coach money on them! I am not surprised price rises are turning people off from luxury, and I really think at this point Coach and other "mid tier" sort of luxury bags are more luxurious than these big brands with histories and reputatiIn are, because the reputation is not worth the inflated price.
Coach quality is so good!
Coach is excellent!!!👌 xx
Coach has great quality.
Coach was and always will be the closest to my heart! My mom introduced me to them - such incredible quality : )
Coach is so good.
A few years ago i would have considered walking into a Chanel store and buying the medium classic flap in beige caviar at the £5,000 price tag. But since the insane price increases this is something i will no longer be able to buy. The thought of dropping £8,000 makes me feel sick, even being lucky to be in a fortunate financial situation! I value quality and value for money and appreciate brands like savette, launer and lalage beaumont which in my opinion is as classy as any Chanel bag and much more discrete. Plus is it just me now that when i see young women in blazers with their Chanel classic flaps it just screams INFLUENCER!
I've been noticing the same trend with luxury brands and their skyrocketing prices. It's made me question the value of investing in new luxury pieces. A few years ago, I would have saved up to splurge on a luxury bag, but now, it just doesn't seem worth it. The quality doesn't match the price anymore. Instead, I've found joy in discovering vintage pieces with a history and character. They're not only more affordable, but they also feel more special. It's interesting how our perspectives change with the market. I'm curious to see if these brands will adjust their strategies in the future.
Neiman Marcus has stated that 2% of their customers account for 40% of sales. So it only makes business sense that they would focus on those customers.
I think most of it just boils down to greed. They are taking advantage of consumers and at the same time reducing quality. I've seen this with a lot of good brands in the US that weren't necessarily luxury but better quality and now they are absolutely crap. I don't buy any of what the companies say as a reason. I've done the math on the price increases over the years and they are so over the top it isn't even funny. A friend of mine used to work for one of these luxury companies and when I found out all she made, I was absolutely appalled. I agree that they are making a mockery of the wealthy.
Cannot agree with you more. Social media has killed the mistery and made these brands less intimidating. Maybe they will all eventually end up following Hermès' modell, with sales and spending games only happening behind closed doors to bring back the feeling of exclusivity 🤷♀️
But not with this kind of quality, they'd need to go back to 90s quality for that which they clearly don't intend to do.
Funny enough this is exactly the logic of any luxury marketing company 😂 they raise prices during recession instead of lowering them. They also keep stock low or else they run the risk of not being exclusive. I also think of the 80:20 rule where 80% of a companies profits come from 20% of their clients (on average). So the average luxury consumer is most likely immune to recessions hence they can continue to be unbothered by price increases.
Loved the video ❤
I think they are mocking everyone who likes their products, not just the wealthy! Personally, apart from books I dropped the luxury brands long ago. Now I am still buying Chanel perfume but if it goes up much more I will hesitate. I still enjoy videos but no more bags bought. I am thinking twice even second hand. Thank you for the video!
I work in retail and i've noticed, my first reaction when i see someone wearing a designer bag, i immediately think its a fake, i find myself complimenting people wearing unique bags that look well made and they are usually artisan or smaller company made...i think smaller companies can provide uniqueness, and i think maybe that is a trend going a little harder.
I used to buy luxury frequently. At least a few bags a year plus accessories. Haven’t bought one since 2019. Only just now about to buy another 6 key holder from LV because mine is falling apart. Shocked to see it’s gone from $250 to $325. Cheap for luxury but a huge increase for just a few years.
I think a big reason could be that those entry level costumers (perfume/lipstick) are actually shopping in other categories today! I’m thinking about social media trends like a fully stocked skin care cabinet, in the US having multiple Stanleys, even buying second hand to appear more ethical. Maybe those consumers are consuming other things to “look good” on social media and not aiming to buy a Chanel lipstick (leading to a purse) like they did 5 years ago? Lovely video as always Sophie Xx
Great blog today. Thank you! ❤
Great observation!
I've noticed this. Very good point. So many who won't spend on a bag but will drop INSANE money on make-up and perfumes. Which you can't sell and can expire. Makes sense as they are a separate boutique from you can shop from and far more "accessible".
Remember a few years ago when designers were discovered burning surplus goods? They'd rather burn them than discount them.
These companies don’t care about you.
It’s a business and that’s it.
Plus criminals will rip you off. Can’t even carry these bags if you want to be safe
Yes, Please stay safe inside your gated neighborhood with your bags. People like you make life so much worse for us on the bottom class.
@@moni5620🙄
@@moni5620Well, you’re looking to be offended, aren’t you? Cheer up.
Hilarious that these brands will think that rich people will pay full price for anything. The first thing every rich person I know would ask a salesperson is whether the item they're looking at is on sale.
I would suspect the popular trend of quiet luxury has also made an impact.
Luxury brands (LVMH owns most luxury brands) are outpacing their consumers, this leave room for middle luxury to take back the market share. Like you said, quiet luxury. People who can produce nice, quality, long-lasting clothes --- they need to enter the market harder. I like the styles of Luxury but grrrrrrrrrl who has that kind of money for a single item. I mean... it's either a designer purse or an entire wardrobe of mid-price high-quality "quiet luxury". Also, clothes covered in logos make me dizzy. @_@
I have luxury bags from 2013- to 2023. Now I have lost my enthusiasm for bags. By the way, your David is such a sweetheart.
I have to say seeing all these young influencers dripping in labels has turned me off. They are so tacky.
I love your vintage collection Sophie. I’m obsessed with vintage.
I think the backfiring is A. the internet revealing the true cost to make these bags especially since they've all downgraded the materials B. Covid reminded people that in your final days you will value experiences way more than your expensive handbags. And C. high interest rates/inflation make it difficult for aspirational spenders to afford regular life, let alone a designer bag. Airline CEOs reported record transcontinental bookings. And Paris and Milan saw a record number of first time visitors. Which tells me that people would rather spend $3500 on a trip to the designer fashion capitals than spend that on a $3500 Guess bag
I don't bother with luxury fashion. Instead I've gone for well made items at midline prices. The conspicuous logos are a huge turn off.
Most of my clothes were made by me. Not only do I control the quality but also also have clothes that fit me right. Sometimes I buy at thrift stores. I did find my favorite blazer at Marshalls. Not instantly recognizable as Burberry.
The profit margin on “luxury” products is so ridiculous that they can afford to lose customers. What products do you know that have a 200-500% mark up from cost. We are paying thousands above for logos.
200 percent mark is not unusual. Walk into any clothing store and you are paying a 200 percent mark up. The handbag mark up can run easily in the thousand percent mark up. Product is costing a few hundred to make at best and charging thousands.
If they're going after the "Elite" they need to up the quality to go with it! These endless price increases with a decrease in quality is a joke. Some of the issues you've shown are terrible for something that costs thousands £££. Poor stitching, dodgy hardware plating, rubbish leather that doesn't wear. I've bought some items pre-owned for a bargain and been overjoyed I never paid full price, would have felt ripped off.
Sounds like a great opportunity for a aspiring shoe designers like me, that exclusivity isn’t good for business. When you price out upper middle class female in USA, EU and South Korea you (Chanel, The Row, etc) will lose revenue period. It’s business 101 and sound lovely to me 💋 Chanel thx
Please help us out and make some beautiful shoes xx !!
My first Chanel is a camera bag from 1986 and I often wonder about who had it , what kind of person they were or are. Extremely special. I definitely think the price hikes are to prevent the average person from buying to try and bring back exclusivity especially LV. Love your videos 💖💖
I think your opinion is pretty accurate and I think as long as they can get away with price increases they will keep doing them. As for pre-loved here in the states I think it is a buyer’s market. Bags are staying online for sell for months when they used to be sold in days. People are definitely worried about the economy etc…and being careful with their money-just MHO. Loved your vintage bags. I love vintage, but I am an old soul who loves antiques, genealogy etc… I collect the 90’s era coach bags-gorgeous leather and mine look new-but I do take care of my things. Great video as usual!
Omg yes! I took me 6 months to sell my pink iridescent Chanel mini flap. The market isn’t what it used be and I had to see at a loss
Shout out to vintage Coach bags…I have some from the early 2000s that impossibly still look new. The quality is real.
Hi Sophie! I think once the customers get whittled down, stores with excessive staff will as well. Because less shoppers means less associates needed in-store. They’ll probably be even harder on them with customer reviews, since they’re driving so much of the business. Their voice will mean more
I think this will hurt brands in the long haul. As much as I might want a specific brand's bag or something it is not worth the money. I can find something similar with the same level quality (most of the time) and I won't be charged the name of the brand. People might decide to invest in a lot less but in the fewer items that they absolutely love. I do love vintage and those pieces seem even more worth it.
I love preloved. I can have the look without the drama of the pricing and the previous quality
Personally I have stopped buying lux goods even before 2019. The reason is that I just gradually “grew out” of them and am now focused on more “adult” investments and charity. Still have my LVs and Pradas in my closet, bit they are now more of a sweet reminder of my younger days and they always bring back great memories! Also, I think luxury goods used to play a bigger part in the past, when all the great fashion designers were still around. Then there was that stable pre social media period, then total commercialisation happened. Difficult to say now what the future holds for those brands, maybe this strategy will work or maybe things have just changed and they will have to reinvent themselves completely and not just their price points.
I might go in a different direction but as a buyer, I love how the boutiques are getting quieter now. I hated the super busy stores with long lines when it didn’t feel like luxury at all. Also, the boutiques have stock and it’s great to see it again. Yes it’s pricey but at least I’m back to feeling what luxury should feel and look like. The only thing I will do is shop less probably, but to me , the whole experience is important too.
But the quality on some of these brands isn’t there. You don’t care about that?
@@tuttuttut7758 Listen, I’m here sitting looking at my Chanel bags that I picked myself from the boutique and I have no complains about their quality. If I don’t like something or don’t think it’s worth it for me, it stays in the store. But as far as it goes now, I have no issues on what I picked up from different brands. The day I’ll get unsatisfied, I will rethink how I shop.
@@tuttuttut7758yes but no item is indestructible. It’s crazy how people expect expensive items to be more durable and indestructible. With regard to defects, as a company grows or increases in demand, quality issues are bound to occur. It’s up to the cons7mer to inspect and accept or return an item that is subpar but people just like to c9mplain about how the item is not worth it and the quality is low….if that’s the case, then don’t buy! It’s a choice.
Aww that Chanel bag with David’s story is the sweetest 🥰🥰🥰
I was in the Chanel store at the Bellagio over the weekend and the staff seemed really unhappy. It hasn't been fun at Chanel since Karl Lagerfeld passed away. RIP
Will gladly leave the top 5% to buy at retail and patiently wait to buy from them when they stick them on second hand markets for a fraction of the price
These brands can't survive without the middle class and what they call "aspirational" customers. Their business strategy has changed so much in the past decade, they rely on these customers to keep pumping cash to keep all those new boutiques open around the world. The 1% is not enough, even if money is no issue, there is just so many bags a millionaire or billionaire will buy that love fashion. Not all of the rich people want to shop from those top boutiques (Chanel, Dior, LV, etc). From that 1%, there are also those who prefer low key brands, like Brunello Cucinelli, Moynat, etc. And there are also those that prefer to wear non branded items, because they simply don't care about fashion and value other things more. Covid years have been so profitable for the luxury world, with all that furlough money, or just people not spending money on nights out and travel, and spending it instead on luxury goods. These brands thought the cash rain would never stop, or maybe they just thought to make the most of it and milk as much as they could, before it is too late. As a former retail fashion merchandiser dealing with numbers, we tend to increase prices when an item sells fast. When you restock it, you increase the price, because it means that you probably didn't price it right for the demand; there is demand and people will be willing to pay a bit extra for it. I think luxury brands got that to the letter and forgot that there should be a limit to their price increases, lol! It is going to be interesting to see what will happen to them in the next couple years. As for me I moved from LV, etc. I am looking at other mid range brands, because it is fun. Their styles, colours and prices. I can wear their bags without worrying someone will steal it, because it is a Chanel or a Birkin. Let's not forget customer service, all these mid range brands offer amazing customer service, whenever I go to shop. Luxury brands I am buying from are Delvaux and Moynat, as for clothing I am into B. Cucinelli and other premium brands.
The Federal Reserve in the US printed SO much cash during that time; I think adding as much as they did to the monetary supply caused all this inflation as well as changing the status quo for most of the population (since they're income is mostly the same) and causing recession. It's gonna get worse IMHO.
I am with you on the whole SM thing. We think everyone has all these Luxury goods, but it
s still only a small percentage. If you look around the streets, you don
t see as much and a lot of people have one or two expensive bags.
Another trend I see is people are focusing on bridge/mid luxury, where they get more for their money. The whole quality issues are also not helping. Around me people are also focusing more in things they can use/wear for a long time and avoid trends.
People around me are also focusing more on expriences and they rather spend a weeking away than pay €3000 for a bag. Times are changing and luxury is still in a bubble and they will have to ajust just like the rest of us.
In the 90s a classic flap cost £600. Around the monthly wage of a first stage clerk at that time ... how things change ... there's a fashion documentary online showing someone buying one and the narrative was this was so expensive for a BAG. Personally I would never drop a stupid amount of money on a bag no matter how rich I was, and there is nothing more gauche than a body full of labels. How you wear them is perfect, you may have on clothes from affordable shops, but you look classy because you are not trying to be anything more than yourself.
Somewhere along the line they stopped being purveyors of luxury goods and started being a scam.
It’s true. It was about design, craftsmanship, adding something thoughtful and beautiful into a mostly mundane life.
Now it’s about shareholder dividends 🤦♀️🤷♀️
Im at the point in my life where i would rather spend 3k+ on a trip then on a bag. Its gotta be really special to make me pause and go, "that's worth it."
I love buying luxury, especially bags but there's a limit to how much I'll splurge. I think Chanel pre-loved is the way to to for me. And if I can't get a Chanel bag or an Hermes bag, that's okay. I'm happy with my Bottega or Fendi or Alaia!
there is no price change in materials. as a manufacturer of leather goods, my materials have not changed prices and I buy high-quality everything - the only thing that has gone up is transport but by pennies on the dollar. their markup is at least 500%, especially LV they use canvas, not leather, and the quality of the material has dropped significantly. I own Pre Arnault luggage made of hemp canvas with a natural resin finish that I have literally dragged through the Amazon and thrown down 1000 cobblestone stairs in Italy and its intact 30 years later. the new stuff is garbage made of cotton with polyurethane. YOU said it perfectly at the beginning they are trying to "CLAW BACK" exclusivity. excluding Chanel and Hermes the model has been turn over not attachment and conglomerate "luxury" is ubiquitous and has lost all value, so they are trying to find it again. I am sure they won't, and I don't see these Kering and LVMH marketing companies that have grown off hype-based merch, using the names of long-dead masters for a decade make it through this one.
I would have bought a Chanel bag for under $5000, but will never spend the amount they're charging now. There's also the added "gross" factor of wearing a bag that people know costs so much money that I can't get behind. I rather buy from another luxury brand with smaller branding that perhaps people aren't as aware of their prices to not be seen as someone who's flaunting an expensive purchase.
I full heartedly agree with this. Pharrell Williams advertising a million dollar really ugly Louis Vutton handbag is just a mockery as well.
Just watching the clip of him smugly talking about that hideous bag made me mad, and then I was mad at myself for having watched 🙄
The strategy comes off as a joke. Meaning it’s laughable that they expect that amount of money even when customer service isn’t good, even when quality is inconsistent, even when some are expected to play “the game”. It’s clear they don’t want the average person to buy their brand so all I can do is laugh and look from afar.
The cost of materials goes up every year but not as much to affect prices that much. I work in the industry and can tell you something that is 1200$ can cost 70-80 to make… so if you can get an item that much on sale for 300-500 your better off since it is closer to whole sale (70 item may sell for 200-300 dollar at whole sale) . I love luxury but I slinky buy brands that make very unique editions and are not the typical top 10 brands like LV who is just robbing people… I meet ftys in China that make actual products for luxury brands in France and Italy… it’s not worth it… I believe the customer really needs to educate themselves before shopping.
Agreed- I used to work for a contemporary fashion designer. Dresses that sold for $600 had a cost of around $50-75 to make. Still not as big a markup as $1200!
What does “ftys” mean?
@@revenge0lobster bad habit from work… we shorten the word factory or factories to fty or ftys.
@@davepedroza6355 Ty!
The combination of price rises and education about value has made me more interested in smaller brands that are actually good quality for the price. I’m going out of my way to avoid brands that feel like a rip off.
Even though I can afford the price increases, it’s really turned me off of buying any additional bags. Customer service is rubbish, quality stinks, just really no reason to add any more to my collection with how things are going. I bought a LP extra bag and I’m probably good for the year.
Hi Sophie ! I love vintage Chanel as much as you. I bought them when they were considered to be " forgotten / dusty" items almost for free. You can only imagine Coco Chanel wore the same model.
Hermes just opened a store in my city, and although I'm in their database as having bought multiple items, including 2 bags, at their NYC store -- crickets. I'd rather buy the good quality of vintage than pay the rude companies the ridiculous prices for new items.
Hi Sophie. Same thing is happening with the autos. Some vehicles have increased by 50% since 2020. Lots of inventory on lots because 1) prices are crazy and 2) interest rates are high too. Shame.
So true about cars!!
I could spend my money on subpar quality just for the label but lately I’ve turned to finding new brands with great quality. I started going down the train of buying things for the label but started giving mid-range leather goods brands and now can’t justify the bigger price tags. Price increases have left a sour taste in my mouth. Feels too opportunistic
Luxury brands must raise prices to remain luxurious.
That’s bull, sorry. Luxury doesn’t equal overpriced and expensive.
@@tuttuttut7758 i would counter by saying that's the very definition of luxury - something excessive, exclusive and not something people actually need. "fairly priced" and "value-driven" = mass market speak.
I think it says a lot that LV has not had a worldwide price increase across all their good since 2022. I know they’ve increased prices in specific markets, but they haven’t done the type of price increase that was every six months from 2020 to 2022. The price of the new products are always higher, but I think for the moment they know they can’t keep increasing the price of their core bags without changing them. It’s why I think they discontinued something like the toiletry pouches and pochettes accessories and reintroduced them with higher price points with additions.
Chanel keeps increasing their prices so I have to admit I’m curious what their strategy actually happens to be.
I wonder how much of the downturn in europe/north america has come from the rise of quiet luxury following these times of global hardship. many people feel less inclined to flash that CC logo or birkin/kelly, be it for reasons of safety or shifting fashion tastes.
Im investing my money in future healthcare. the price increases are gross and the service and quality is worse. VCA was awful last week. it changed
I think that these companies are going to exclusive their way out of profit and something is going to have to give soon. Watch.
Enjoyed this well researched statistically supported hypothesis 😂 a bit more than just "here are cute bags"
Not surprising to hear sales are down. I noticed the neverfull is already back to being available online here in the US. (Wasn’t it only a few months ago that they made it unavailable online and the rumor was it would have to be purchased in store?!). There are always going to be a group that won’t care what something costs or what hoops they need to jump through to purchase it, but I think the larger majority have a limit. Great video!
Many negative aspects of the apparel industry, and others, are still conveniently blamed on the pandemic: no customer service, super-long delivery times and high prices. Meanwhile, the quality continues to deteriorate. There has been a big consumer backlash against cheap synthetic fabrics and fast-fashion, at last. I don’t mind paying more for quality, especially to get good natural-fiber fabrics, better design and quality construction, but won’t pay extra for just a status symbol, or even label.
I spent on two new bags in 2023, 1 balenciaga 1 celine, and their quality is just atrocious. I bought a pre-loved prada briefcase from 2012 and an lv clutch from 1997, the quality of these used items are miles better than the ones i bought brand new for like 4x-5x the price
I bought my Chanel bag in 2019 £4,200...I looked in Chanel in December 2023 and the classic flap has literally doubled! It's edging to Hermes money now and I know which brand I'd rather buy if I had a spare £10,000 laying around.
The luxury brand pricing strategies are not forward looking when you consider gen z who is anti label. It might work for now but their customer base won’t be around forever.
Interesting point, but these are international brands that are looking at markets in every corner of the globe. The “gen z” kind of culture seems limited to the Western sphere to me….
The “big” legacy designer brands get the most sales in the Middle East (oil money) and China (manufacturing money).
I honestly think these brands are shifting to a different type of customer.
What a great guy David is! That was a sweet story! I’m so annoyed with price increases that I’m exclusively purchasing preloved now.
It's definitely backfiring. While nonsensical rich people do exist, most rich are only rich because they are sensible about money. I've noticed a sudden rise in frequency of the rich ones (by rich I mean, they can buy whatever common luxuries they like without denting their wallet or saving up) moving into the replica space. They talk about how annoying the Hermes game is, how annoying the wait time has become, and even after the long wait they may not even get the exact kind that they ultimately want the most. I have a colleague who was appalled by having to wait for 5+ years on a Daytona, so he just went straight to the rep. It's absolutely crazy how open people are these days about their rep lifestyle. So, yes, it's definitely backfiring.
Now, THAT is interesting. Totally messes with the brands’ concept of value and quality.
I think rising crime rates is also a factor, at least for me. I don’t want to buy more luxury items because the prices are so high now, wearing the items makes you a target. The net result is I don’t feel comfortable wearing my bags out as much so no way I will spend the insane current prices when I barely wear the ones I have.
Agreed
The last and only ‘luxury’ item I got was a YSL SLG which was over 5 years ago before the extortionate price increases. Luckily, I know where my priorities are, and it’s not in flaunting big logos to people but rather on having experiences with my loved ones. If more people thought this way, these brands would be soon extinct. They can have their elite clientele but the rest of us know there is more to life than material items.
Personally I don't think it's that complicated. I think that LVMH owns most CLOTHES that are being produced period. So they are selling top luxury for as much as they can. LVMH doesn't care about fashion (creativity, skill, craftsmanship being pass down, tradition being passed down). The only thing they care about is MONEY!!! Luxury prices have risen because LVMH knows that *SOMEONE* will still buy their stuff and they are pushing to squeeze out as much as they can from their consumers. If the new prices don't work then they will probably lower them somehow... .
YES! YES! YES! The obscene, outrageous, and greedy price increases have driven many a luxury buyer to the secondary markets for vintage/previously loved items with La reasonable price tag and better quality.
It's not just the price increases that make them loose customers but the low quality of their products, as well.
i loved this video Sophie.
I once read a quote that really stuck with me: If you are buying luxury products but you dont own stocks in the brand, your doing it wrong.
Yes!! Smarter to own LVMH shares than an LV bag.
What a fascinating topic Sophie. I think social media somehow diluted the idea and the experience luxury. I can see this would be a strong point for brands to rise prices to somehow make luxury a luxury again, if that makes sense. Less affordable prices means the more exclusive clients will have their products. I just don't see how that would really translate. I used to work at coach and kate spade and i remember how the brands were marking down bags all the time and we got to a point that the stores felt like an outlet and people would only ask about sales. The real affluent clients would shop only at night when stores were empty. I always observed that and realized the luxury experience was being lost. This was pre covid
As for myself, I see myself shopping less because 1.) the world has opened up, and I’d like to travel 2.) my preloved Chanel minis sit in my closet collecting dust because they’re too expensive to wear out now, especially when I’m alone 3.) with the amount of time and money it takes to save for a bag now, I almost feel like I am cosplaying, so I’d rather buy bags in the $1,500 price tag. Feels and looks more authentic to me and my life.
I’ve considered myself middle class and I’ve wanted the Chanel business affinity after hearing how you loved it. But Chanel prices kept on going up to the point where it no longer make sense to spend that much money on a purse. For a classic flap, I could put that money down for a car. So if Chanel only wants their clientele to be the super rich, then they have succeeded. I’ll spend my money on other luxury brands.
Luxury fashion houses are playing thenselves tbh. The middle east market is thriving now but they too will realise theres little value in carrying bags which people assume are fake. Once the oil money runs dry big brands will lose their last lot of devoted customers.
Regarding preloved
10 years ago luxury lovers would have stuck their noses up at preloved bags. We went from never wanting to buy preloved, to buying preloved more than new. Now preloved prices are rising too, the same square flap you purchased for £1800 is now £3500 preloved. Itll drive people to replicas. And once the middle classes normalise replicas its game over for the big brands. Theyll price everyone out eventually and the companies will go bust.
I love the leather guy who rips bags up and calculates average cost to make. With that information, we simply cannot be so stupid to keep spending the way we have been.
Totally agree with you on this topic. Btw the vintage Chanel are beautiful. Am I crazy or a few years ago did Chanel wanted to stop their bags being sold on the resale market. Did anything come of that?
Yes, they currently filed a lawsuit against a big reseller shop (What comes around, goes around)
David is so thoughtful!! That square Chanel bag is absolutely gorgeous. ❤❤🐰🐰🐰🐰
Interesting observation. I’m not into designer bags. I only use my mother’s occasionally. Your vintage Chanel collection is beautiful. I like them better than the puffy quilted ones made today. I think a factor in luxury cosmetic sales dropping off, at least for Chanel, is that they’ve really strayed from their mature customers. I loved Chanel make up back in the day but who needs so much red eyeshadow? It’s not flattering on many people yet they keep trying to make it a thing. Every season I’m hopeful for something wearable and pretty but so far it’s more red and warm colors. No thanks.
I’m pretty sure Chanel Beauty is geared towards the Asian market, where pink and red eyeshadows are very popular (and have a history in beauty standards of their culture).
❤ Your vintage collection, so beautiful & timeless
I do agree with you, that probably luxury brands are trying to separate the high end class from middle class, but there is also a thing during Covid here in USA we got a whole lot of free money and I knew that in some point later on the government will get this money back, so everyone raising prices is some how to get their losses from that time of period.
I really enjoy your video and I do personally love if I find something Vintage. I also like finding me some good luxury items at the Outlets.
Sophie you bring up such good points. I’d be curious to know from the truly wealthy if they even think or consider the price hikes, or if it’s just another day another dollar. Or if it’s more the middle class aspirational folks (like myself) moaning about the prices.