This Week's Obsession: Are Luxury Brands Pricing Out the 95%?

This Week's Obsession: Are Luxury Brands Pricing Out the 95%?

Did you know that 95% of luxury goods customers are aspirational shoppers who spend on average £2000 per year?  It seems there isn't a week that goes by without a luxury brand announcing price increases. This week it was Gucci with a 9% global price hike on their handbags.  As brands continue to raise prices and try to elevate their brand offerings, these key customers, who actually are the source of future growth, are being priced out of the market.  

Price increases on designer goods have several impacts on aspirational shoppers, who often aim to purchase luxury items as symbols of personal achievement. Here are some key effects:

  1. Increased Exclusivity: Higher prices can enhance the exclusivity and perceived value of designer goods, making them even more desirable to aspirational shoppers. However, this can also put these items further out of reach for some.

  2. Strained Affordability: For many aspirational shoppers, price hikes can make it more challenging to afford designer goods. They may need to save for longer periods, prioritise their purchases more carefully, or consider alternative ways to obtain these items, such as buying second-hand.

  3. Shifts in Spending Behaviour: Aspirational shoppers might adjust their spending habits in response to price hikes. This could involve buying fewer items, focusing on classic pieces with timeless appeal, or opting for entry-level products within a brand.

  4. Increased Demand for Alternatives: Price hikes may drive aspirational shoppers to seek out more affordable luxury brands, premium contemporary brands, or high-quality replicas. This can boost the market for these alternatives.

  5. Enhanced Perception of Value: When prices increase, the perceived value of owning designer goods can rise. Aspirational shoppers may feel a greater sense of achievement and satisfaction when they finally acquire such items.

  6. Impact on Brand Loyalty: While some shoppers may remain loyal to their favourite brands despite price hikes, others might switch to brands that offer better value or align more closely with their budget.

  7. Rental and Second-Hand Market Growth: Price hikes can force these customers to other models of ownership and access including rental and resale. Both of which are good choices because they can be less expensive or more sustainable.  However, they have their limits.  Rental is a great option for things you want to try or wear once. It gets very expensive to rent items frequently, especially designer handbags  Resale is a good option when looking for hard to get items that are in excellent condition and your can trust the source.

One of the reasons, and there are many, that we launched More was we saw a gap in this market.  What about the investment pieces you want to wear often and hold for a number of years.  More answers both of these desires. What if you are part of the 95% being priced out of the market?  Again, More answers this concern. Because you buy only 20% of an item, it reduces the amount you are investing. And the bag will be available for you to use for 10 weeks every year - forever or until you decide to sell your share on our marketplace.  And because we maintain your items, this extends their lifespan and ensures your piece retains it's value. 

Feeling the pinch of price increases but still love the bag?  Let us solve that for you!

Take a look at the price comparisons of a Dior Tote Bag for Rental, Resale and Co-ownership.

With co-ownership you not only get 10 weeks of access to your bag EVERY year FOREVER or until you decide to sell your share on our marketplace.  

One of the downfalls of buying resale is the condition of the back and the worry of authenticity.  We guarantee both, as we buy directly from the brands and our partners in the secondary market who are trusted sources.  

We will ensure your item is in and stays in pristine condition. Our white glove concierge service protects your investment against loss, damage, as well as maintains, repairs and delivers. All you do is enjoy your beautiful bag! No risks, no hassles just the joy.