The luxury fashion industry has seen an unprecedented rise in its prices over the past few years. Brands such as Hermès and Chanel are known to have some of the most expensive items in the market, often commanding thousands of pounds and even having waiting lists for their products. Ultra luxury brands are increasingly targeting the ultra-rich, creating an exclusive market that has been referred to as the “ultra-affluent”. This practice of isolating a customer base with high disposable income is becoming more and more common, leaving out certain segments of the population who are “rich but not that rich”.
We all want to look our best and make a good impression on others. But not everyone can afford the luxury brands that offer stylish yet expensive bags. So, how do we get our hands on a fashionable yet affordable bag? Are the less pricey bags able to provide the same quality and style of expensive ones? Let’s start with breaking down how much would it cost to make a bag, then we could have some ideas what are we paying for.
Valuable Truth - the cost of making a luxury leather bag
Making a quality genuine leather bag is not an inexpensive process. It requires the use of materials that cost around 30-60 pounds and labor costs of 15-20 pounds, resulting in a total cost for the medium size bag of up to 80 pounds. With these costs in mind, it is important to have an understanding of the process involved in creating such a bag and how these costs are allocated. But why we can’t rarely find any luxury leather bags with the price range of 100-200 pounds (for a luxury leather bag with great design it normally would cost over thousands pounds). The answer is, marketing + logo take the most.
The Trend and Wise Customers
Consumers are increasingly looking for more than just the logo when it comes to luxury fashion. They are looking for quality, design and overall experience. This has led to a surge in new luxury brands such as Mi Bolsa London, which focus on providing customers with unique, high-quality products instead of simply relying on the traditional logo-driven approach.