Personally, I would class a Louis Vuitton handbag that costs £10,000 to be a luxury product; whereas a bag that costs £500 I would class as an expensive product, but not necessarily a luxury product.
We have been – and are still going through – a turbulent global economy. Many luxury brands are driven by celebrity endorsements, and “expensive” low volume products are becoming very popular in the celebrity world.
You can imagine celebrity agents advising their clients to tone down the look to appeal to the masses: quirky and expensive items are cool; whereas luxury and opulent items in a turbulent global economy are not. It would be like asking for caviar in a soup kitchen – you would not be popular.
These “expensive” products are in a way being promoted by Pinterest; as people who are visually driven and enjoy the finer things in life, seem to love Pinterest, and therefore ‘pin’ relevant images and products.
Pinterest is a cost effective high street for new ‘expensive’ brands; one pin by the right person in the right place can be the making of an emerging brand, and this is opening the floodgates for thousands of new brands to hit the internet, but not necessarily the high street.
By unsuccessfully driving their bags towards over the £1,000 price tag, Mulberry could not have timed it worse, and have consequently learnt the hard way by possibly trying to rub shoulders with the likes of Prada and Gucci.
Mulberry has since returned to its core, more affordable bags priced between £500 and £800 to win back customers, along with introducing a click and collect service in the UK.
Similarly, Prada added a small Saffiano bag to its range last year for £530; therefore even the big hitters are having to respond to these emerging, cool, socially acceptable online brands.
So how much do you think a luxury handbag is worth, and how many amazing alternatives can you find on Pinterest today?