Hi guys I'm Eileen. Today I want to
talk about a not so exciting topic, which is luxury price increases. Some of you
might know Louis Vuitton has just increased their prices again in April after quite a recent price
increase back in January. In fact both Chanel and Louis Vuitton increased their prices twice
last year. There are some speculations saying luxury brands have to do this because of
their reduced revenue due to the pandemic, although I think Louis Vuitton probably hasn't
been hit as hard compared to Chanel because a lot of their products are available online. In fact
even Hermes offers online shopping, although their selection is not very comprehensive and certainly
doesn't include Birkin or Kelly bags. Anyway, regardless of the reason, price increase is simply
not something many of us look forward to, unless if you happen to have something to sell from your
luxury collection. So today I want to really dive into price increases for luxury brands and talk
about how that might affect the way we shop. First of all, inflation is a fact of life. If
something is in demand, the price will go up. Whether if it's a bottle of milk or a Chanel
handbag, as long as there's a market for it, inflation is almost a guarantee. However given the
price tags of fine jewelry and designer handbags, the scale of increase can be quite hard to
swallow. So for example, if a bottle of milk used to cost £1 and you're now having to pay £1.20,
it might not seem like such a big deal, but if a Louis Vuitton handbag was a £1000 yesterday
and £1200 today, it's quite a different matter. So I can see why an upcoming price increase can
create such a sense of urgency for luxury lovers. Now if there's something you've been eyeing on
for a long time and you've been saving up for it, then i guess there's no reason to wait longer
just to pay more. In short if you are 100% sure you're gonna make the purchase anyway, then
why wait longer. However if buying the item earlier means digging into your emergency fund
or putting yourself into credit card debt, then I would suggest to just ignore the price
increase. I'm a firm believer that financial security should always come before luxury shopping
and we should never let any kind of price increase or designer items change that dynamic. Make the
purchase only when you're in the position to do so and you'll enjoy the items so much
more. When it comes to luxury items, I often talk about creating a wish list because
that way, it's so much easier to set yourself a budget just so you don't overspend. Secondly,
you are also narrowing down the items you need to spend time to do research for. However not
all wishlist items are created the same, and we certainly don't have to get every single item on
our wishlist, it's not a bucket list after all. So if you're slightly interested in something
but you're not entirely sure if the item will be the right fit for you, don't let price
increase push you into buying something on impulse. I understand it can be quite annoying
if you decide later you want the item after all, but by then you'll have to pay the surplus, but
that is still better than being stuck with an expensive item you don't enjoy using. This is why
I think luxury minimalism is so important because first of all, when you've decided less is
more, you are basically letting go of the fear of missing out. In a way, you acknowledge
there are a lot of beautiful things out there but you don't have to own them all. Besides,
when you're quite selective with what you buy, you naturally will only buy the things which
are 100% right for you. sS every time you buy something, you would have considered things
like practicality, versatility, cost per wear, and so on. Therefore even when you have to
pay a bit more, you probably will not mind. Think about it, when you're not buying every Louis
Vuitton handbag under the sun, you're already in a better financial position, and that gives you more
flexibility to pay a bit more for the few items which you really really love. Next I want to touch
on classic pieces such as Hermes Birkin bags, Chanel classic flaps and the Louis Vuitton Speedy.
These classic pieces will inevitably go up in price over time, we might not know by how much or
how often it will take place, but it's almost a guarantee they will get more and more expensive.
So if you buy a Chanel classic flap today and keep it in a pristine condition, you might
actually make a small profit in five years time, but is it actually worth the time and effort ?
Until you sell the bag, you are responsible for the insurance, storage, and maintenance of this
bag. And let's not forget the sale commission you have to pay, and the time you have to spend on
listing, negotiating, packing, and posting. More importantly, not all classic pieces hold the same
value, it very much depends on the current fashion trend. For example, everyone loves mini bags now
but that might change. Other factors like leathers and colors can also affect the demand of a bag. So
I think it's really important to remind ourselves that price increase is not a protection against
losing money, and it's certainly not a reason to shop for luxury items mindlessly. Moving on, I
want to talk about buying luxury items preloved. I think with today's shopping culture, so
many people are constantly buying and selling, so it might be a good idea to try to benefit from
that. There are several websites I love to browse on to look for good deals and SÀCLAB is one of
them. Now generally buying luxury items preloved is slightly cheaper but obviously there's some
exceptions such as Chanel season pieces, like the Chanel mini flaps, and Hermes Birkin, Kelly and
Constance bags. On the other hand, luxury brands like Dior, Celine and Prada are usually quite
heavily discounted on the secondhand market. So even if you're quite drawn to buying brand new
pieces from the stores, I would suggest to always keep your options open. Having said that, whenever
there's a price increase for a luxury brand, it very quickly gets reflected on the second-hand
market as well. So for example if Louis Vuitton announced a 10% price increase today, resellers
will quickly adjust their prices accordingly. Same goes with individual sellers, I mean if
i want to sell my Chanel classic flap today, I will take into account the current retail price.
So in a way ,you might reach a point where even the discount is not very appealing anymore. On
that note I think it's also really important to not get distracted when you see a good deal on the
second-hand market. So for example, if you really want a Chanel classic flap in a black color,
don't compromise just because you see a dark blue one discounted at 30 percent off. The secondhand
market is for you to look for your perfect pieces at good discounts, not to look for your second
best options. I personally don't pay a lot of attention to price increases anymore because I
don't want my emotion to influence what I buy or not buy. I think it's sensible to
compare prices, but at the same time, if we keep looking at what something used to
cost in the past, we will never buy anything. So now when I'm interested in something, I
try to look at the item at its face value and decide for myself if it's actually worth the
price tag. So for example, a Chanel jumbo flap is about £6000 now, but 10 years ago it used to cost
less than half that price. So if you've decided to buy one brand new from the Chanel store, the only
question left is, is it worth that kind of money? In a way, the massive price jump can be a very
useful way for you to gauge if you really love the bag so much, to the extent you don't mind
funding the inflation. If you think about it, it's quite similar to investing in stocks.
So the stock price for Google for example, has gone up about 10 times in the last decade.
So if you invest today, it might seem like a crazy amount to pay for, but as long as there's
potential for this stock to go up, it doesn't really matter what it used to cost 10 years ago.
I guess I'm digressing here but my point is, if you really love something and you've saved
up the money for it, then what it used to cost shouldn't really concern you that much. Instead,
try to focus on if you can actually justify the current price point. I've stopped buying Chanel
several price increases ago, because for me, the prices are more than what I'm willing to pay
for. I don't necessarily feel upset or let down, it's really more about me setting my own
boundaries and respecting my own budget. So those are my thoughts about luxury price increases. I
personally haven't bought anything just to beat inflation and I don't recommend anyone to do
that either. I mean you probably wouldn't buy more milk or bread this year just because you know
for a fact that the prices will go up next year. Most of us will only buy what we can physically
consume because we know any excess will basically go to waste. And to be honest, it's not that
different when it comes to luxury shopping. So I would suggest to simply acknowledge price
increase will happen and we can't stop it, but we don't have to let that dictate how we shop. So
if you're interested in buying something, by all means keep up to date with the prices, and decide
for yourself when is the best time to buy. Most importantly, don't rush into buying anything. So
that's it from me, thank you so much for watching, and don't forget to share, like, and subscribe.
I will see you in my next one, have a nice day.
