Luxury has just become more expensive, says a new report by Edited. Prices of luxury fashion products have surged 7 per cent above 2020 and 25 per cent above 2019, the report analyzes. They are currently at a four-year low though there’s less than 1 per cent year-on-year difference from last year.
Women’s outwear dominates price-rise
Prices of women’s outerwear have surged most during the three-year period increasing 20 per cent over 2019 to $3,395.12 on average. Products like Dolce & Gabbana’s Jacquard coat with embroidery are retailing at $66,000 now; these are followed by menswear retailing at $3,053.94.
Known for denoting a women’s status symbol, handbags are retailing 20 per cent higher than 2019. The highest prices are being commanded by Louis Vuitton followed by City Steamer and Capucines BB bags. These handbags and outwear have traditionally been more expensive than other products as they are delicately designed and made from expensive materials including animal fur. Though, the industry is largely going fur-free, a few brands continue to include fur in their collections, making their items more expensive. However, this is set to change with Italian brand Fendi opting for animal and plastic-free, lab-grown fur. The brand believes this can help restructure the prices of fur products across the globe.
Rising prices of affordable designer items
The prices of not just luxury but also affordable items from designer brands have also increased in the last few months. In women’s wear, price of trainers have increased 2 per cent while for men it has grown 10 per cent since 2019. Once again, the highest prices are being commanded by Louis Vuitton with its Luxembourg Samothrac e and Aftergame trainers recording the highest online price increase.
Prices for men’s T-shirts have gone up 55 per cent over 2019 while those of women’s T-shirts have grown 15 per cent. A Balenciaga cotton logo T-shirt that retailed at $595 years ago currently retails at $650 with Demna Gvasalia being considered one of the most high-profile designers currently.
However, the price hike isn’t discouraging customers. While consumer spending halted for some time due to fresh lockdowns in China and the Russia-Ukraine war, US sales of brands like Prada were strong enough to offset losses.
Rely on available data
As per the latest data from Edited, so far in 2022, luxury retail has surged 21 per cent over 2019. Prices will continue to rise despite the economic fallout triggered by Russia-Ukraine war and rising oil prices, says the report. With added sanctions across other nations, the war could lead to a decline in globalization and invite sanctions on more nations, adding to the strain on the supply chain. To avoid passing these costs onto customers and keeping their margins sustainable, retailers need to keep a close watch on available data.