^Hmm, maybe for others, but every time I see some anorexic celeb druggie carry a Chanel, it makes me want one less.
I agree with you. Yes, maybe not us, but there are lots of young girls out there that live to follow trends in fashion. I know Chanel has withstood the ages, but there was a time when many young people would not be caught wearing a Chanel purse (I'm sure this will happen again one day). Now with so much of young Hollywood stars being photographed wearing a Chanel purse, it's becoming the new "trendy" it bag to have. This is what I've personally noticed in these past recent years. I also feel that this is one of the reasons for the crazy price increases. Chanel is getting lots of free advertisement from young Hollywood these days. I hope it ends soon.
Well, why are all luxury brands expensive? In some cases (Chanel, Hermes, etc.), the bags are handmade (either fully or partially) and require hours and hours of labor. You can do a search and find threads on this. Even so, we're just talking about leather, some hardware, and whatever else. Ultimately, labor and materials do not account for several thousand dollars... the markup is astronomical (but there are so many things we can say that about).
Handbags are so expensive because a. consumers are willing to pay a premium for whatever reason (brand loyalty, perceived better quality, lack of substitutes in their mind, etc.) and b. companies take advantage of this fact by charging the most they can and, at some point, raising their prices. If some consumers get turned off by the high price/a price increase, a large company like Chanel knows they'll be okay... for every person who stops buying or who hits their price limit, there will be several more women out there who aren't so price sensitive/will buy no matter what.
Also, when you buy a handbag, you buy much more than the actual bag... in a sense, you purchase the brands history, the legacy, etc... and why you as a consumer think that has to do with the very savvy marketing of the company! Basically, we are all being manipulated haha. You hope that when you buy a Chanel bag, you are investing in a classic, iconic handbag that will last you for many years... I'm willing to bet that that's the line of reasoning many women use to justify the high cost.
Price of purchase includes so much more than just the bag. Retail prices include materials, labor, shipping, duty, mark up, cost of operating the store, cost of shopping bags, boxes and ribbons. It's all just a business. Yes the mark up is going to be large, like 2-3 times wholesale prices but there are reasons for that and because they can charge that much is not on the top of the list.
The reason they cost so much is: 1) they keep raising the prices. Why do they raise them? Because they know people will keep buying; 2) to keep the brand in step with other luxury houses. If one raises their priced, the others do as well. (Not from my lips but from an SA who has worked the line for years.) The price hikes do not appear to be stopping despite the global economic climate for any of the houses. Pardon my sick sense of humor but I, for one, would laugh my bum off if they end up going belly up like so many other business have. (That said, I have always had a soft spot for Chanel, so you can imagine how I'd feel if I despised them.)