There are many reasons why their price increases (considerably) year after year. Therefore, asking why bags cost so much, is the French newspaper Le Figaro. Who seeks answers by interviewing Audrey Depraeter-Montacel, Managing Director of Accenture’s Fashion & Luxury France division.
Doubled in ten years
As Depraeter-Montacel points out, the price “has doubled in ten years”. This is due, first of all, to “inflation applied to the leather goods market” and “to exponential increases operated by brands”. To the point that the “risk of a collapse in sales” can be taken into consideration. Second, consumers must consider the new dynamics in the use of accessories. “At one time, for most women, the purse was the gateway to luxury brands”, explains Depraeter-Montacel. Now, however, the market is progressively showing greater interest in small leather goods. However, says the Accenture analyst, “producing these small models is less simple than you might think. And it’s also very expensive”.
Small is necessary
“Today, consumers are more easily attracted to a clutch, a silk scarf or an iPhone case – continues Depraeter-Montacel -. For example, in Asia these objects are worn over the shoulder or around the neck and have replaced wallets”. Young Chinese and Japanese consumers “have never used a credit card, and all their transactions take place via smartphone”.
“What historically gave value to bags – concludes Depraeter-Montacel – that is craftsmanship and raw materials, are no longer elements taken into consideration to establish the price. The value is linked to the brand, to what it communicate. It is the magic of luxury and sometimes it is difficult to explain”.