Brands have been steadily increasing the prices of their designer bags for years, long before the recent record inflation. The average price for a women’s designer bag in the US has risen around 27 percent since 2019, according to Edited research cited in BoF Insights’ report “The New Era of Designer Handbags.”
Versace is the latest luxury player to announce price hikes for its bags, which currently sell for between $1,000 and $3,000. John Idol, chief executive of Capri Holdings, Versace’s parent company, told an industry conference earlier this month that the increases better aligned Versace’s prices with those of competitors. Capri has also signalled that price increases were forthcoming at two other subsidiaries, Michael Kors and Jimmy Choo.
How do these increasing prices align with consumers’ budgets? A US survey in June 2022 from BoF Insights sheds some light on the matter. The average price of $2,475 for a designer bag is almost 2.5 times higher than the amount US general consumers say their budgets will allow, but is still within budget for approximately 60 percent of the US high-net-worth individuals polled.
For more insights like these, see the in-depth analysis that BoF Insights has published — on designer bags, resale, digital fashion, supply chain, and sustainability.
BoF Insights is The Business of Fashion’s new data and analysis think tank that arms fashion and luxury executives with the business intelligence they need to make better strategic decisions. Building upon its unparalleled industry access and knowledge, BoF Insights provides companies with in-depth research and analysis, executive briefings and training, and bespoke advisory services designed to support clients in answering their most critical business questions and solve for their most pressing challenges. Interested in working with BoF Insights? Reach out to [email protected].
