“Luxury bags make your life more pleasant, make you dream, give you confidence, and show your neighbors you’re doing well.” Karl Lagerfeld
Luxury fashion brands decided going up is better than going down. Prices have increased on aspirational pieces. Chanel bags are now twenty percent more. The controversial Speedy Bag from Louis Vuitton menswear head Pharrell now goes for $1 million. Is this too much? Have the labels lost touched with aspirational clients? Recently there have been many articles and social media posts on an industry that is feeling more and more out of touch.
Instagram gave the world an entitled make believe reality of imaginary wealth, generating demand for high priced goods. In business, when there is increased desire, rise the prices, the Chanel Hobo Bag is now 6350 euros. However, consumers are now balking at forking over more a prized item. The biggest luxury corporations LVMH, Kering and Richemont have been caught off guard, reporting lower sales figures. As the economy slows, inflation bites, buyers have put off buying the latest expensive offerings. Is this only a trend or a new normal of shoppers thinking twice about trading upward? Dreaming keeps the spirits high, but during these times, customers feel money in bank is more secure.