Price Increase of Chanel Medium Classic Flap. Image from Sotheby’s
If you were to buy a Chanel Medium Classic Flap bag a decade ago, you would have paid half the price of what the bag is retailing today. Recently, Yves Saint Laurent increased the prices on the majority of their items. An espadrille that was priced last month at $650 is now marketed at $725.
It is not uncommon for most luxury brands to increase the prices of their products every year. In the luxury world, this is referred to as a price increase, a pricing strategy that many luxury brands implement to not only drive more sales but to retain exclusivity.
Oftentimes, shoppers will hold off on purchasing a product right away because they want to wait to see if they can snag an item for a sale price. Regularly increasing products of luxury goods is a tactic high-end fashion houses use to promote a sense of urgency and incentivize consumers to buy the product they had their eye on before the price raises.
Via Sotheby’s
Raising the prices of luxury goods is also a strategy for high-end fashion houses to maintain an exclusive status. When a luxury item has a high price point, there will be fewer people who will buy the product, deeming the item more valuable. The Birkin bag designed by Hermès is notably the most expensive luxury handbag you can find on the market. The exclusivity of this bag is associated with the brand’s upscaled reputation and status.
Would you still buy a luxury item after a price increase? Let us know! Tag us @HerCampusSJSU!