Why the luxury labels don't go on sale: what retailers don't want you to know
Gucci, Prada, Burberry, Louis Vuitton, Chanel. We know those words are synonymous with stylish and chic, but have you ever wondered why the cost of goods from these designer labels cost so much money?
According to the Bureau of Labor Statistics, the price of luxury goods has risen 60 percent just in the last decade. While industry leaders claim this is because of the rising cost of materials necessary to make these products (think exotic skins and furs), others are saying the major luxury brands would rather preserve their exclusive reputation than have an item go on sale.
In fact, fashion insiders are claiming that the cost of an item is exactly what makes it so covetable. According to Business of Fashion, Burberry has said as recently as this past March that the label will continue to raise prices in an effort to attract an even wealthier customer base. Sounds pretty crazy to us, especially considering the cost of one of the brand's signature trench coats can retail anywhere from $750-$2,000. Even the price of an Hermès Kelly bag, ever the ultimate sign of fortune and wealth, has jumped from $4,800 to $7,600 in the past thirteen years.
And as far as any of the major luxury labels, like Louis Vuitton or Chanel, going on sale? Forget about it. According to New York retail consultant Robert Burke, a brand's "biggest fear is having to mark anything down." This is because the lower prices signals to the customers that the item isn't as desirable, and brands like Chanel and Louis Vuitton are all about being exclusive, ultra-chic, and most of all -- unattainable to most consumers.
So, it looks like for now, we won't be able to purchase that Chanel 2.55 bag or Louis Vuitton Speedy bag -- on sale, at least.