The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
Brands have been steadily increasing the prices of their designer bags for years, long before the recent record inflation. The average price for a women’s designer bag in the US has risen around 27 percent since 2019, according to Edited research cited in BoF Insights’ report “The New Era of Designer Handbags.”
Versace is the latest luxury player to announce price hikes for its bags, which currently sell for between $1,000 and $3,000. John Idol, chief executive of Capri Holdings, Versace’s parent company, told an industry conference earlier this month that the increases better aligned Versace’s prices with those of competitors. Capri has also signalled that price increases were forthcoming at two other subsidiaries, Michael Kors and Jimmy Choo.
How do these increasing prices align with consumers’ budgets? A US survey in June 2022 from BoF Insights sheds some light on the matter. The average price of $2,475 for a designer bag is almost 2.5 times higher than the amount US general consumers say their budgets will allow, but is still within budget for approximately 60 percent of the US high-net-worth individuals polled.
For more insights like these, see the in-depth analysis that BoF Insights has published — on designer bags, resale, digital fashion, supply chain, and sustainability.
BoF Insights is The Business of Fashion’s data and advisory team, partnering with leading fashion and beauty clients to help them grow their brands and businesses. Get in touch at insights@businessoffashion.com to understand how BoF Insights support your company’s growth for the long term.
Read the latest BoF Insights report to get BoF’s perspective on designer bags and small leather goods, covering key competitive shifts, including what, why and how consumers buy in the US and China, the category’s biggest markets.
As top luxury labels raise prices and tighten distribution, designer bags are garnering higher prices at resale, with some styles from coveted brands retaining a significant portion of their retail value long after purchase.
For years, luxury brands have been raising their prices, simply because they could. But as raw materials get more expensive, and real inflation continues to rise, sophisticated shoppers may begin to look elsewhere.
Benjamin Schneider is the Senior Research Lead at the Business of Fashion (BoF). He is based in New York City as part of BoF’s Insights team, which arms fashion and luxury executives with proprietary business intelligence.
Diana Lee is the Director of Research & Analysis at The Business of Fashion. She is based in London and oversees the content strategy and roadmap for BoF Insights.
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