Recently, I have figured out that the Luis Vuitton Speedy bag I had purchased back in college zoomed up like a rocket compared to its current price in the market today. A stunning $300 increase in about a couple of years made me think that maybe purchasing them early on would do better than wait till it gets older and more expensive like an antique. But what actually gives LV and other brands like Hermes and other brand name bags the luxury to increase their prices in a blink of an eye.
LV s one of the brands who can increase at that rate in such a short period of time whole other designer purses or handbags for women like Hermes can increase from 50-60% in a decade time. This rate is the same for Manolo Blahnik’s wholesale handbags and could increase another 13% annually thereafter. Business of Fashion said that when a brand manufactures or sells a bag (whether they are discount handbags or regular priced leather handbags), only 35% of its final price is being used and the rest of the price is used to balance their not so profitable ventures like couture ventures, perfume, beauty products and some who also sell shoes. They will also be saving up for the labor as this thing just keeps getting more and more expensive every single day. The charges for laborers have been doubled in the past decade and yes, the laborers who finished your designer bags had to continue feeding his family.
Another thing is the material being used. The price of authentic leather and cotton has been a juggling idea in the market. Even cheap designer handbags have to buy somehow the synthetic leather which now costs more than half of the original leather. The global process for these items has been continuously growing that sometimes, they had to boost the price or either give up on some materials and just keep the old fashion designing. Accessories are one of the most important parts of luxury handbags, sometimes companies had to place a rare find only for their items to look new and appealing. And even if the price is sky rocket high, we keep on buying these cute handbags so, even if the sales are not high, they still manage to keep up with the sold items covering for the rest.
These fashion handbags are all sprouting from different markets and are now being made from different countries like China, Brazil and India. The expansion of buyers make the brand name handbags more prominent in the market, thus entitling them to keep letting the price rise, naming it however they want, whenever they want.