Why do Luxury Brands Increase their Prices Every Year?
Luxury brands are notorious for raising their prices every year and some designers multiple times a year. The main reasons why luxury brands increase their prices every year is due to inflation, production costs increasing, and fluctuation between the different currencies.
Why Do Luxury Brands Increase their Prices Every Year?
You may be wondering, why do luxury brands increase their prices every year? Luxury brands, similar to even groceries, are always increasing their prices every year. The first reason luxury brands increase their price every year is because of inflation. According to the US inflation rates, inflation went up by 6.5% in 2022. This inflation amount is passed on and reflection in the price of luxury bags.
The second main reason prices increases are due to production costs increasing on the brand side. The third main reason on why luxury brands increase their prices every year is because of the fluctuation between the different currencies.
Which Luxury Brands Increase their Prices Every Year?
The truth is, all luxury brands increase their prices every year. This isn’t a new thing that just started happening. The most popular luxury brands that increase their prices every year on iconic staple pieces include: Balenciaga, Balmain, Bottega, Boucheron, Burberry, Cartier, Celine, Chanel, Chaumet Chloe, Dior, Fendi, Givenchy, Goyard, Gucci, Hermes, Louis Vuitton, Prada, Salvatore Ferragamo, Tom Ford, Valentino, YSL / Saint Laurent, and Van Cleef & Arpel.
Keep in mind that these brands will increase their staple / timeless pieces between 1-3 times a year. It is possible to find vintage pieces that haven't been impacted by the price increase. If you are open to buying a lesser known Louis Vuitton bag, there is a good chance the price increase won't be as high.
Why Chanel is constantly raising their prices?
Chanel is one of the worst offenders raises prices in 2020 by 20% on their Classic Flap bag and have shown no signs of stopping anytime soon. Chanel is “claiming” their Classic flap bag is not trying to be price competitive with the Hermes Birkin, despite all signs pointing to it. I’ve written an entire price breakdown of Chanel Flap bag, you can read about here.
Are Luxury Brands Still Worth Investing in?
I do still believe that luxury bags are still worth investing in! In fact, I would double down on investing in timeless, classic, luxury bags. I know it’s tempting to buy and invest in trendy and unique bags, but spending a lot of money on a bag won't retain its value. Trends come and go, so definitely invest in the classics before you start purchasing trend bags.
When it comes to colors and which color bag to purchase, I always recommend getting your bag in a neutral color, it’s easier to match your outfit to, it has a higher resell value, and it’s timeless (meaning that the color will never go out of style).
Do Luxury Bags, Accessories, or Clothes ever get discounted?
I always tell people the best place to buy Luxury brands at a discounted price is through the vintage market, theft stores, or even estate sales. Although with the last 2 (theft stores / estate sales) you must be weary of their authenticity. My favorite places to get vintage luxury handbags and accessories online include Fashionphile, Rebag, and Vestiaire collective.
OR you could always travel to Europe to buy a European luxury designer bag, they are definitely cheaper in Europe vs the US. If you want to see a price breakdown, of luxury brands in Europe vs the US I recommend check out this article.
Recap on Why Do Luxury Brands Raise Their Prices Every Year?
Luxury brands are always increasing their price, which is why I recommend to anyone buying an iconic bag from a luxury brand such as the Lady Dior, Hermes Birkin or Kelly, and Chanel Classic Flap bag (just to name a few) then it’s better to do it now before another price increase happens. Based upon trends, you can almost predict when these brands will increase their prices, but you never truly 100% know when. The only thing we do know, is that the classic, timeless bags, neutral colors always increase in price and are never sold at a discount at the retail store.
Sincerely Petite in Paris,
Diane
