I wonder if the periodic price increases are part of the brand strategy. LVMH gave the Céline reins to Phoebe Philo with the mandate that she had to attempt to elevate brand prestige and desirability for a given number of years. The prices had to start out low enough to get people interested in Céline in general, but the price increases would then build the brand's image as elite and prestigious. The plan apparently is that once Philo has fulfilled her job of elevating the brand's profile in such a way, LVMH will then start bringing out cheaper products that will allow a wider swathe of middle-class buyers to buy into the brand, boosting profits by riding on the back of an established image.
The only thing that doesn't make sense in the above scenario is the decline in quality people are reporting with the bags. The brand's prestige won't be bolstered if quality is obviously on a bit of a downhill run.
The only thing that doesn't make sense in the above scenario is the decline in quality people are reporting with the bags. The brand's prestige won't be bolstered if quality is obviously on a bit of a downhill run.
