Death by Greedflation?

For global luxury brands, things have actually always been great since the turn of the millennium: unless there was a financial crisis or COVID, demand and sales rose steadily. During the same period, “value-based pricing” finally took hold—though the luxury industry interpreted it as “Simply because we can.” Specifically: Prices have more than doubled on average over the past ten years, and for some brands, they’ve easily increased tenfold. And yes, there are the young heirs, the celebrities, and the billionaires who somehow haven’t even noticed. But there are also customers who are certainly “established” or “up-and-coming” and would have enough disposable income—yet wonder whether price and value are still in a reasonably appropriate balance. 1,200 euros for the Rimowa “Original Cabin”? 1,690 euros for a tiny re-edition bag from Prada made of, uh, nylon, made in China? And while buying a luxury brand used to trigger hedonistic emotions—pride, joy, self-worth, status—feelings are now flooding the limbic system that are poison for business: unease, fear of losing control, anger. That’s just how you feel when you realize: You’re about to be ripped off. According to Bain & Company, established luxury brands have already lost 50 million customers this way. Customers who, by the way, continue to buy suitcases and bags. This is where the opportunity lies for brands that deliver outstanding quality, contemporary design, and tangible added value. Brands like Rixo and Polène show how it’s done. We ask ourselves: Have the “old” luxury brands just killed themselves out of greed? Or are they simply indestructible?

What do you think?

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https://www.markenartikel-magazin.de/_rubric/detail.php?rubric=marke-marketing&nr=99345