Let's Talk About the Price of Bags Across the Board, Are they Crazy or am I?

[rocketbean]

Years ago there was the concern of selling fake handbags and how that affected the luxury brand maket, and the market fought back and now illegal bags can be confiscated and destroyed. I wonder if they can do anything to fight agains the resale market. But I doubt it, and I think everyone has the right to purchase / sell their bags. Time will tell how it affects the luxury market.

Anyways, I am digressing ...

I think I differentiate between two types of resale. There’s the “good” one that I think I would be supportive of, which is people who bought something wanting to let it go. The “used” or “preloved”.

Then there’s the other resale which I hate with a passion. This is people who buy limited items new from the boutique for the sole purpose of “building a business” and reselling them at insanely marked up prices. Like ticket scalpers.

I hope the stores deal with the second but leave the first alone.

 

[Coconuts40]

I think I differentiate between two types of resale. There’s the “good” one that I think I would be supportive of, which is people who bought something wanting to let it go. The “used” or “preloved”.

Then there’s the other resale which I hate with a passion. This is people who buy limited items new from the boutique for the sole purpose of “building a business” and reselling them at insanely marked up prices. Like ticket scalpers.

I hope the stores deal with the second but leave the first alone.

Well said!!

 

[Sparkletastic]

I worked out that with inflation I *think* the 2.55 Chanel should be worth around $2.5k now if they were keeping pricing constant. Yet we all know what it is actually priced at.
If I was a billionaire I probably wouldn't care and I would buy whatever I liked. Sadly I'm not a billionaire and while being blessed financially more than many and technically able to afford premier handbags reguarly I cant justify the prices. Not when I have kids and a future. 6k handbags are not featuring on the priority scale, neither are 3k handbags. In all honesty the prices anger me. I think they are taking the proverbial. Who do they think we are?? Stupid? They give an influencer a designer handbag on Instagram and suddenly that justifys the ridiculous price increases?
Common sense is completely out the window. I would probably pay 1 to 2k for a bag and I would like that to be a very special bag but 5/6k plus?? No thanks. The lower scale is ridiculous as well. Mk bags for $300 - $400 made in china, churned out by the millions. The saving grace for the contemporary designers is that with sale prices the bags are obtainable without taking out a mortgage. Are they worth it? Are any of the bags worth the asking prices? No but at least you can have fun with contemporary designers, buy into the seasonal fashions and not faint if your child emptys a juice box over it.
For me now I like the idea of finding the up and coming premier designers of tomorrow. The privately owned boutique bag designers still making bags by hand with quality materials. It's much more exciting to invest in those companies and have a potential future 'IT' bag and if you never hear of the company again you still have a beautiful bag for a fraction of the cost.

No need to get angry. Marketing is business discipline. It’s not personal or a social attack. Marketers aren’t gleefully sitting around in rooms jacking up prices to make anyone mad. LOL! They are being smart and responsible if they maximize price (and properly manage branding) to generate maximum profit.

I just choose to ignore it when someone wants me to pay more for something than I feel it’s worth. For example, branded jewelry is that category I can’t get behind at all. I think those prices are far more cuckoo than handbags because the branded items can LITERALLY give zero additional quality or even style (for example for a solitaire diamond in a platimum band) yet be two to ten times more expensive than an equally graded / weighted / crafted non branded item. But, the marketing teams at the jewelry brands have been successful in getting many to pay for...nothing.

But, very few of us are completely immune. I love diamonds though I know they aren’t nearly as scarce as they are priced to seem to be (thanks DeBeers family...not). I choose to pay for clear, sparkly rocks with no intrinsic value. Am I stupid? I guess so in the strictest way f looking at it. But, my stupid choices are socially acceptable. LOL!

So I don’t flinch when a brand charges “big” money for “little” product. I just keep a firm hold on my wallet and watch the show.

Speaking of Millenials - They are still at a young age where bags like Hermes isn't exactly relevant for their age. I mean, I didn't appreciate Hermes until I turned 40. Although I am not a Millennial, I can't help but walk around my city and see Louis Vuitton and Chanel boutiques flooded with young girls. The Milennnials I know would love to carry a luxury bag and drive an expensive car and wear designer bags - they just haven't achieved that status yet where they can do so. What I do see is their justification of quality over quantity/ sustainable items/ some environmental advantage.

I do think the retail market is flooded but if you look, a lot of the bags for sale are less desirable bags - larger bags, seasonal colours. I don't blame Saks off Fifth for selling vintage H bags, they saw an opportunity and went for it. I think the biggest question is how will the reselling of our designer goods affect the luxury market itself. I happen to know that the Hermes in my city have made it very difficult to send a handbag for spa service without a receipt. This is why I choose not to purchase a bag off the resale market if it's Hermes. I did that once, and then sold it because I didn't want the hassle at the H boutique if something happened to it and I needed it serviced. I buy directly from the boutique.

Years ago there was the concern of selling fake handbags and how that affected the luxury brand maket, and the market fought back and now illegal bags can be confiscated and destroyed. I wonder if they can do anything to fight agains the resale market. But I doubt it, and I think everyone has the right to purchase / sell their bags. Time will tell how it affects the luxury market.

Anyways, I am digressing ...

I agree with you and the research would support your point. Millennials aren’t buying luxury items now because they simply can’t afford to right now. It’s just like with marriage and having kids. They aren’t eschewing these milestones, they are simply doing them later. One study even shows that as millennials are getting older (30’s) they are now buying homes at the same rates as previous generations of that age group. They just delayed buying, skipped the started home and are buying the “dream” home as their first.

So while they will certainly do things differently as every generation does (Do you know any Gen X’r who wants a china or curio cabinet? LOL!) and I think they will maintain quite a bit of their experiences v stuff and ethical products bias, I also feel we will see them participate more and more in luxury markets as time goes on.

 

[gburgnicole]

No need to get angry. Marketing is business discipline. It’s not personal or a social attack. Marketers aren’t gleefully sitting around in rooms jacking up prices to make anyone mad. LOL! They are being smart and responsible if they maximize price (and properly manage branding) to generate maximum profit.

I just choose to ignore it when someone wants me to pay more for something than I feel it’s worth. For example, branded jewelry is that category I can’t get behind at all. I think those prices are far more cuckoo than handbags because the branded items can LITERALLY give zero additional quality or even style (for example for a solitaire diamond in a platimum band) yet be two to ten times more expensive than an equally graded / weighted / crafted non branded item. But, the marketing teams at the jewelry brands have been successful in getting many to pay for...nothing.

But, very few of us are completely immune. I love diamonds though I know they aren’t nearly as scarce as they are priced to seem to be (thanks DeBeers family...not). I choose to pay for clear, sparkly rocks with no intrinsic value. Am I stupid? I guess so in the strictest way f looking at it. But, my stupid choices are socially acceptable. LOL!

So I don’t flinch when a brand charges “big” money for “little” product. I just keep a firm hold on my wallet and watch the show.
I agree with you and the research would support your point. Millennials aren’t buying luxury items now because they simply can’t afford to right now. It’s just like with marriage and having kids. They aren’t eschewing these milestones, they are simply doing them later. One study even shows that as millennials are getting older (30’s) they are now buying homes at the same rates as previous generations of that age group. They just delayed buying, skipped the started home and are buying the “dream” home as their first.

So while they will certainly do things differently as every generation does (Do you know any Gen X’r who wants a china or curio cabinet? LOL!) and I think they will maintain quite a bit of their experiences v stuff and ethical products bias, I also feel we will see them participate more and more in luxury markets as time goes on.

I read your last point and I realized that I (as an older millennial) have a china cabinet and curio cabinet, as do many of my millennial friends who have homes (I'm 33). Is it true that the generation ahead of us don't have these? I live in suburban NJ and have rarely encountered a dining room without them.

 

[fabuleux]

The reality is that there is no logical correlation between price and quality in the luxury market. Once you understand that, you can find peace, and buy what you want and can afford!

 

[rocketbean]

The reality is that there is no logical correlation between price and quality in the luxury market. Once you understand that, you can find peace, and buy what you want and can afford!

More importantly, there is no correlation between price and value. Pricing is a means to a brand-image end.

And generally as wealth grows in the world - this is more of an average statement and may not apply to specific individuals - prices go up. Just look at the number of millionaire Chinese buying luxury when just over 20 years ago it was a totally different picture.

Just remember - more people are getting rich quicker than ever before in the general. This may or may not be us in the specific and it definitely sucks if it’s not us. But the brands know this and prices are rapidly increasing to match what is happening in the aggregate, not necessarily what is happening in silos.

And like fab says - find peace, and enjoy the ride!

 

[HopelessBagGirl]

I read your last point and I realized that I (as an older millennial) have a china cabinet and curio cabinet, as do many of my millennial friends who have homes (I'm 33). Is it true that the generation ahead of us don't have these? I live in suburban NJ and have rarely encountered a dining room without them.

That is correct, I’m 39 so I’m a young gen Xer, and we do not want them or have them. Or any china.

 

[Coconuts40]

That is correct, I’m 39 so I’m a young gen Xer, and we do not want them or have them. Or any china.

Interesting, as I am Gen X and I love my china. I have a beautiful collection and proud of it
Goes to show you the over generalizations aren't always correct.

 

[vink]

I read your last point and I realized that I (as an older millennial) have a china cabinet and curio cabinet, as do many of my millennial friends who have homes (I'm 33). Is it true that the generation ahead of us don't have these? I live in suburban NJ and have rarely encountered a dining room without them.

I think it depends on your background and how you are raised. I collect antiques trinkets since I was in primary school. I started small and it doesn’t have to be expensive pieces. I cherish my mom’s Noritake fine china to the bottom of my heart. My DH who is only 2 years older doesn’t. He knows nothing of art and antiques. Doesn’t care if the utensils don’t match and can’t tell the difference between heavy plastic (Melamine?) and Corelle. I’m the gen X.

 

[Sparkletastic]

I read your last point and I realized that I (as an older millennial) have a china cabinet and curio cabinet, as do many of my millennial friends who have homes (I'm 33). Is it true that the generation ahead of us don't have these? I live in suburban NJ and have rarely encountered a dining room without them.

That is correct, I’m 39 so I’m a young gen Xer, and we do not want them or have them. Or any china.

Interesting, as I am Gen X and I love my china. I have a beautiful collection and proud of it
Goes to show you the over generalizations aren't always correct.

I think it depends on your background and how you are raised. I collect antiques trinkets since I was in primary school. I started small and it doesn’t have to be expensive pieces. I cherish my mom’s Noritake fine china to the bottom of my heart. My DH who is only 2 years older doesn’t. He knows nothing of art and antiques. Doesn’t care if the utensils don’t match and can’t tell the difference between heavy plastic (Melamine?) and Corelle. I’m the gen X.

Actually, I’m in marketing and one of my areas of expertise is (US) generational marketing. I find the differences between generations to be fascinating. When I used this cabinet example it wasn’t to say that no millennial wants china. LOL! I actually gave my mother’s set to my 23yo Gen Z daughter. In contrast, I’m Gen X and don’t even have a strong affection for my own set. It was to speak to strong trends and common characteristics that help us understand differences between groups. Not to offer a rule that can be applied to every individual.

That being said the china and curio cabinet are pieces of furniture that are far less popular than they were in previous decades. Tastes change and trends change.

https://www.google.com/amp/s/www.cbc.ca/amp/1.4539104

https://www.cheatsheet.com/culture/...-heirlooms-millennials-dont-really-want.html/
That being said, I personally don’t see china or cabinets in very many under 45 yo homeowners’ dining rooms any more as dining becomes more casual and people do less collecting - even if the dining room furniture is just as expensive and well made as it was in the past.

But, now...back to bags!!!