Why do people love/buy Chanel, LV, Gucci, expensive bags?

[BarbaraKE]

The thing that gets me is - how much are they saving? Seriously, the cost of the raw materials is a tiny percentage of the cost of the bags. So they save maybe a couple of dollars per bag but turn around and sell the bag for hundreds if not thousands of dollars. Meanwhile they've given themselves a reputation for cheapness. That's going to catch up with them in the long run.

On a side note, I ran across a vintage Coach bag at a thrift store. Navy blue shoulder bag, lovely patina, thick leather. I'm in love with it.

 

[Sparkletastic]

The thing that gets me is - how much are they saving? Seriously, the cost of the raw materials is a tiny percentage of the cost of the bags. So they save maybe a couple of dollars per bag but turn around and sell the bag for hundreds if not thousands of dollars. Meanwhile they've given themselves a reputation for cheapness. That's going to catch up with them in the long run.

On a side note, I ran across a vintage Coach bag at a thrift store. Navy blue shoulder bag, lovely patina, thick leather. I'm in love with it.

Congrats on your vintage Coach find!! Those bags are amazing. And they really did a nice navy back then. I wish I had kept my older Coach bags.

And, I get your frustration about the brands cheaping out. As a consumer, I hate the changes but as a business person, I think it makes sense and I'd do the same if I was managing the businesses. Some of the changes probably save quite a bit in terms of cost of materials. Taking out a leather lining probably reduces material costs by 25-40 %. Not using real gold plating with today's high prices is also probably a decent decrease. And, using cheaper labor to construct the bags (usually not as well as previous craftspeople did unfortunately) is a huge cost reduction. Given that the market is relatively inelastic, demand stays high even given these incremental downgrades over time.

To that point, I don't think they are getting a rep for cheapness. Just look at most of the conversations on TPF about quality. Everyone will fiercely defend their chosen brand(s) as having "high quality". Buuuuuut, everyone can't be right.

A very few people will keep a critical eye on the product over time and swap out for a new brand when they see a move downward. But, most people will justify in their heads - no matter what happens - that their brand is still wonderfully made whether they pay $100, $1000, or $10,000 for the bag. It's human nature. We're built to justify our choices. And for something with huge (non material / construction) buying factors such as style, brand cache and trend, it's easy for people to ignore small quality shifts here or there. At least on TPF we get to hear about downgrades and about multiple people's experiences so we can make a somewhat (at least a teeny bit LOL!) more rational choices than the average hangdbag buyer.

 

[Tuned83]

Answering the initial question. Much younger I bought 100 pound bags but they fell apart after 2-3 months of use. I bought mulberry bag for 500 pounds I still own it now and it is wearable 10 years later. I now buy Chanel cos I bought a load of cheaper designers but still yearned for Chanel. Paying for those and not being 100% happy seamed counterproductive. I don't buy often but now much more picky about what I get.

 

[2cello]

And for something with huge (non material / construction) buying factors such as style, brand cache and trend, it's easy for people to ignore small quality shifts here or there.

It is hard to break into being the "it' thing, but boy the margins you can make if you can do it.

 

[BarbaraKE]

<Snip> And, I get your frustration about the brands cheaping out. As a consumer, I hate the changes but as a business person, I think it makes sense and I'd do the same if I was managing the businesses. Some of the changes probably save quite a bit in terms of cost of materials. Taking out a leather lining probably reduces material costs by 25-40 %. Not using real gold plating with today's high prices is also probably a decent decrease. And, using cheaper labor to construct the bags (usually not as well as previous craftspeople did unfortunately) is a huge cost reduction. Given that the market is relatively inelastic, demand stays high even given these incremental downgrades over time.

But the material cost is a tiny fraction of the price of the bag, probably no more than 10%. So let's assume that a (retail) $1,000 bag actually costs $100 in material. (If anything, I think I'm being generous.) So let's say they manage to save 30% on their material cost. That's $30 (30% of $100). But how does that affect the perception of their bags? How many sales do they lose because people perceive that their quality has gone down?

To that point, I don't think they are getting a rep for cheapness. Just look at most of the conversations on TPF about quality. Everyone will fiercely defend their chosen brand(s) as having "high quality". Buuuuuut, everyone can't be right.

It's a proven fact that people will equate 'high price' with 'high quality'. (Seriously, look up some of the studies that have been done. It's really quite amusing how people can fool themselves.) I'm not saying there's no correlation between price and quality but the correlation is much less than more people think.

A very few people will keep a critical eye on the product over time and swap out for a new brand when they see a move downward. But, most people will justify in their heads - no matter what happens - that their brand is still wonderfully made whether they pay $100, $1000, or $10,000 for the bag. It's human nature. We're built to justify our choices. And for something with huge (non material / construction) buying factors such as style, brand cache and trend, it's easy for people to ignore small quality shifts here or there. At least on TPF we get to hear about downgrades and about multiple people's experiences so we can make a somewhat (at least a teeny bit LOL!) more rational choices than the average hangdbag buyer.

One think I've gathered from reading this forum is (what seems to be) the common perception that xyz brand has gone down in quality over the past xx years. That's not a good perception for a premium designer to have.

 

[2cello]

It's a proven fact that people will equate 'high price' with 'high quality'. (Seriously, look up some of the studies that have been done. It's really quite amusing how people can fool themselves.) I'm not saying there's no correlation between price and quality but the correlation is much less than more people think.

A friend of mine is a lawyer. His firm hired consultants to help them grow their business. The consultants told them to increase their hourly rates - clients will perceive them to be better attorneys if they are expensive. It worked.

We refer people out to attorneys and often people ask us for *more expensive* ones, even though we did serious vetting on the firms we are recommending. We do find people who live on the coasts (east/west of US) are more prone to this thinking than people that live in the middle of the country.

 

[amary18]

This is my first post! So glad that I came across this forum.
Personally, I dress very simple in neutral colours (my entire closet is something like an Aritzia boutique). For that reason, I've always been one to splurge on a designer handbag or good shoe. I think these two accessories instantly glamourize an outfit taking it from night and day. This makes an iconic piece justifiable in my mind...it can transform any outfit.

Recently I did a closet purge and ended up chucking a lot of stuff from crappy shoe stores (think Aldo). Of all the stuff I threw away I wish if I'd just have bought my Chanel to begin with (QUALITY OVER QUANTITY ANY DAY)

 

[Aoifs]

I don't know really! I've always had an eye for quality and I just love bags. I don't spend a lot on clothes and dress quite casual outside work. I love pairing my Chanel GST with my adidas superstars! I think it brings my outfit to the next level and I feel so chic! For my pockets sake, I wish I liked more reasonably priced bags but I never get as much pleasure from them so I now only buy a bag every 2-3+ years but I spend more on it and carefully select it! [emoji846]

Just to also add that my bags fit me no matter what and I'm afraid I'm a bit of a yo-yo dieter! My bags always make me feel good [emoji4]

 

[nfornat]

I'm quite a late bloomer with designer bags. I find that unless it's something that makes the bag unique and functional for my lifestyle, it is the name and the pleasure of being able to afford something I really like. I have been working for quite some time now with a stable job so in recent years have purchased a few designer bags.

As much as I love the look of the Chanel classic flaps, I don't think I will ever be able to bring myself to buying one because of the price and needing to pay for mortgage and bills. My quilted Michael Kors handbag is its alternative and I'm happy with it.

 

[ipsum]

And I began a really epic hunt for a forever bag. Something that felt luxurious, understated and premium. And for me, that premium feeling means lined in leather or suede.

Love your story. Maybe you'd like to take a look at Mulberry's or Tom Ford's selection? They have quite many understaded bags with suede/leather lining.

 

[pianolize]

I couldn't agree with you more- I really appreciate delicious dark roast coffee, but if I can find an equivalent, less-cost non-Starbucks, then so be it! Actually today I was in the mood for a deli coffee w cream & sugar, so I had that! Same with bags, though I've definitely noticed that I enjoy having a huge variety to suit my needs for the day: size, weight, flexibility, weather, colors, style/mood (silly/formal/practical/artistic...) I also know about myself that I love what I love, and that rarely changes- if I just 'like' something, that sentiment may come or go. Right now I'm trying to figure out a way to off-load everything I don't absolutely LOVE- the 'problem' is that (like shoes!) the quality of craftsmanship/durability varies, and I tend to get attached to certain items which may or may not be well-crafted. I find that often times if I get a 'cheap' bag (I get that this is relative-I mean something I happen by on a whim made by an unknown or clearly simply mass-produced), it breaks/falls apart/wears easily, so I end up spending more in repair costs (or trying to 'salvage it somehow... then eventually the low-cost replacement I find breaks down too, then I find myself wishing it were better-quality yada yada. If I compare this to the analogous shoe issue I face, as someone who traipses all over the city all day, if you calculate the repair/wear-down/replacement cost, it's probably cheaper in the long run to just get the better-quality durable item in the first place. But of course this line of thinking only works up to a point, for practicality-reasoning...)

I also feel very fortunate to live in a fashion hub/metropolis where these amazing, beautifully-designed items are rampant. One can find gorgeous items inexpensively if you look hard enough, especially with the help of internet too these days.
It's true that you can't exactly 'un-notice' certain details, so now that I've been carrying some amazing bags (due to luck, kind ppl, excited splurging, you name it), there is definitely a stark contrast with the others. Though, I also find it a relief to not have to 'worry' about dirt/germs/floor/beer/coffee/clumsiness/unexpected downpour, etc, so I truly appreciate all my bags, wherever they may land on this hugely broad spectrum. I'm sure ppl must agree with me at least on some level- this is an entire forum devoted to how much we all looove our bags!!! ❤❤

Love Sparkle's coffee explanation. Drinks are such great analogies for taste and luxury shopping. My husband loves his indie artisan coffee and snubs Starbucks. I down pots of instant coffee but am picky about beers and love craft beers... And remain completely uninformed about wine despite attempts by friends to educate me.

My collection ranges from no name pleather to premier brand leather bags, although the large bulk is contemporary. There are arguments for bags of all levels. First of all, there are some well made durable no name bags, and I enjoy using them and not worrying about their longevity. Then, you start getting into the contemporary brands. I think once you develop an appreciation for fine leather and good design, you can't turn back. For example, I can never accept untidy stitching in my bags now that I am used to seeing neat even stitching.

And then after that, you start to appreciate the quality, the workmanship and heritage of the higher end bags, and it's a spiral into madness after that. I would say that if you can't justify a Gucci Soho to yourself right now, don't spend the money. It may be that you never feel the price to be justified. Or maybe you will, down the road, at which point it is not too late either to pick one up on the resale market.

 

[happy27]

I buy luxury bags because I appreciate the quality and craftsmanship of brands and also special designs like Gucci, Dior and LV (rather than blatantly obvious knock offs like Michael kors). hope I'm not offending anyone but I refuse to buy MK bags for this reason no matter how ok quality and reasonably priced. But I can appreciate other contemporary bags like Coach, because I can see the creativity with each collection even if designers do inspire and get influenced by each other, and coach bags are one of the most durable bags that I've owned.

I'm not much of a jeweller person so I would think twice about spending hundreds on Tiffany silver pieces when I know silver is dirty cheap.

I also never buy bags based on whats trending and popular, but simply based on what I personally like even if resale value is crap. This is why despite being a lv fan, I only bought the lv neverfull this year with the customisable stickers and black leather trim at a premium, at least it's a bag that's meaningful and what I love.

Coffee is a great comparison. In Australia we're a nation super obsessed with coffee and Starbucks, despite being a global brand, has gone bankrupt here, why? The quality speaks for itself, starbucks coffee is nowhere near the coffee served by standalone boutique cafes. There's only one or few Starbucks around and pretty much only to cater tourists. My friends from oversea and US are all converts after they tasted the coffee here, so i will digress a little and recommend people to try out nonStarbucks coffee if they get the chance to visit

 

[jade]

While Starbucks isn’t great - it is consistent. You know what you are getting.

While I generally seek out local roasted and well executed coffee - you can easily get burned. In all senses of the word.

When I am in an unknown place and no one has vetted the local coffee for me, I’ll head to Starbucks for a seasonal special.

 

[KittyKat65]

My first "designer" bag was a Kate Spade Sam 20 years ago and I remember it cost $180, which was utterly ridiculous to me, but the bag was all I dreamed of so I bought it. Fast forward to now and I have around 20 premium designer bags - not many by TPF standards, but enough for me. The designers I love most are Chanel and Hermes and I really don't think I could be happy with a contemporary designer bag at this point after carrying a Birkin. I love my premium bags and use them all equally because I can tell the difference in quality. The feel of the leathers, the stitching, the designs are all part of the big package to me. I see my Hermes and Chanel as bags that are classic, timeless pieces and the quality will last. I also don't have a yearning for any more bags because I have all of the bags I have ever wanted.

 

[chicinthecity777]

Other than that I can afford them, this is how I see it. I'd rather spend more money to buy fewer quality pieces which won't fall apart after 2 seasons. I look after my bags well (but not hugely fussy) so they look good for their age. And if I ever get tired of any, I can still get some money back for reselling them. The cheap ones don't have any residue value at all. You are pretty much throwing them away afterwards.