This first-world problem for fashionistas is a sign that luxury brands are playing harder to get with their most sought-after products. The Paris brand says it only increases prices to offset higher manufacturing costs, but this year’s increase is its largest in at least a decade. The brand may feel under pressure to defend its reputation as the maker of the world’s most expensive handbags. With the U.S. consumer-price index up a fifth since 2019, luxury brands do need to offset higher wage and materials costs. Many aspirational shoppers can no longer afford the handbags, but luxury brands can’t risk alienating them altogether.

Source: Wall Street Journal March 05, 2024 21:24 UTC