In Photos

By Chiara Corradini | Photoreporter

Luxury houses are experiencing a crisis right now. Almost all the most famous luxury brands, such as Hermès, Gucci, and Dior, are encountering important falls in their sales. Society’s values have changed and so has the economy. The increase in prices of luxury goods and the development in the ability to produce replicas of them are two of the most impactful factors for this decline, according to Cristina D’Agostino, the editor of Luxury Tribune.  

All luxury brands have raised their prices to an inaccessible range; increasing them from 5 to 20 percent and further reducing the number of potential buyers. These increases are due to multiple factors, such as inflation or higher production costs. Yet, the most important reason for increasing prices to keep their exclusivity. However, in today’s world, where the cost of living becomes less sustainable every day, this pricing strategy is starting to show some flaws, according to Allison Crawford, a writer for Blue Line Style. Their element of uniqueness is cutting out more and more consumers, resulting in a loss of profits. As a consequence, people either rely on vintage and secondhand stores or replicas of luxury goods.  

Recently, buying second hand or vintage products has become a trend. Beside the sustainable factor, which plays an important role in this decision, the economic factor is also as important. Those products offer the same values as the new ones, yet their prices are much more affordable. As Crawford highlights, very often vintage pices offer an advantageous value for money. Today, for people with a normal income, who years ago could also afford luxury goods, is useless to buy the same exact item at skyrocketing prices instead of buying it second hand.   

In addition, mass-production of replicas of luxury goods, especially bags, is increasing. Tourist cities are filling up with replicas of stores and stands. They get inspiration from luxury houses and replicate the same items and sell them for much lower prices on street corners all over. It is undoubtfully a unique experience to purchase from a sidewalk compared to entering luxury stores. However, when customers are given the choice to buy the same exact bag for 80 euros or for 8000 euros. The answer to what they will decide to purchase is an easier one.   

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