{"id":11844,"date":"2026-06-26T02:05:38","date_gmt":"2026-06-26T02:05:38","guid":{"rendered":"https:\/\/agility-research.com\/?p=11844"},"modified":"2026-06-26T02:05:40","modified_gmt":"2026-06-26T02:05:40","slug":"why-luxury-brands-are-grappling-with-the-price-value-equation","status":"publish","type":"post","link":"https:\/\/agility-research.com\/zh\/why-luxury-brands-are-grappling-with-the-price-value-equation\/","title":{"rendered":"\u4e3a\u4ec0\u4e48\u5962\u4f88\u54c1\u54c1\u724c\u6b63\u5728\u82e6\u82e6\u5e94\u5bf9\u4ef7\u683c\u4e0e\u4ef7\u503c\u7684\u5e73\u8861"},"content":{"rendered":"

Experts recommend a return to the fundamentals of luxury \u2014 genuine craftsmanship, authenticity, quality and durability.<\/p>\n\n\n\n

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Perhaps the thorniest of challenges for \u5962\u4f88\u54c1\u724c<\/a> in an already tough market is restoring a clearer sense of value for money after rampant price hikes and some lapses in quality<\/a> left many consumers frustrated \u2014 or worse, industry experts say.<\/p>\n\n\n\n

\u201cThe remedy is ultimately a return to the fundamentals of luxury: genuine craftsmanship, authenticity, quality<\/a>, durability, transparency, and a certain degree of restraint,\u201d argued Achim Berg, founder of FashionSights, an independent corporate think tank. \u201cBrands that truly live these values \u2014 rather than simply marketing them \u2014 will be in a much stronger position once the market stabilizes and consumers become even more selective.\u201d<\/p>\n\n\n\n

Multiple observers cited a need among\u00a0\u5962\u4f88\u54c1\u724c<\/a>\u00a0to justify significantly higher\u00a0prices<\/a>\u00a0relative to the pre-pandemic period \u2014 which explains why executives have been trumpeting efforts to improve product quality.<\/p>\n\n\n\n

For example, at the Kering Capital Markets Day in Florence in April, the French luxury group\u2019s chief executive officer Luca de Meo said of \u53e4\u9a70<\/a>: \u201cWe are elevating quality everywhere\u2026 This quality update will be very, very meaningful\u2026  We are renewing the price architecture to ensure that perceived value and price remain aligned.\u201d<\/p>\n\n\n\n

He made similar vows talking about Saint Laurent\u2019s leather goods business: \u201cQuality standards will be further strengthened towards true high-end positioning.<\/p>\n\n\n\n

\u201cInvestment to improve product quality and further enhance our standards when it comes to supplier selection, supply-chain quality will generate costs,\u201d he added.<\/p>\n\n\n\n

Executives from brands as diverse as Dior and Jacquemus have been talking about quality improvements over the past year or so.<\/p>\n\n\n\n

\u201cAt the price of luxury, everything has to be perfect. If not, the magic is broken,\u201d said Luca Solca, luxury analyst at Bernstein. \u201cLuxury is a business of details.\u201d<\/p>\n\n\n\n

And now that the post-pandemic spending frenzy is over, \u201cluxury consumers are asking for value for money again\u2026 Brands are having to prove that their products actually justify the prices being charged,\u201d Berg said.<\/p>\n\n\n\n

Jean Revis, cofounder of Paris-based luxury consultancy MAD, characterized the current discourse about quality to \u201cmore of a value-for-money catch-up\u201d than correcting lapses.<\/p>\n\n\n\n

\u201cI don\u2019t think brands were skimping on quality, they just mixed brand elevation and price elevation,\u201d he said in an interview. \u201cA true brand elevation is not just about more expensive: It\u2019s about sending all the signals that will grow brand equity \u2014 creativity, quality of service, and of course quality itself.\u201d<\/p>\n\n\n\n

In his view, brands can justify price elevation with enhanced quality, but brands best not trumpet such measures.<\/p>\n\n\n\n

\u201cA large part of it should happen in-store, with a specific sales speech, better education of the sales associates on this topic, and probably specific trainings about it,\u201d he said.<\/p>\n\n\n\n

And while \u201cproduct maintenance and after-sales is not a topic that is systematically discussed, the topics are intimately linked, and insisting on them definitely would allow associates to reassure and provide a sense of durability \u2014 a major criteria for quality perception.\u201d<\/p>\n\n\n\n

Agility Research & Strategy, a Singapore-based consultancy specializing in the behavior of affluent, high-net-worth and ultra-high-net-worth consumers, found that two-thirds of this consumer cohort agree that too many luxury brands raised prices without improving quality.<\/p>\n\n\n\n

\u201cIn the U.S., that figure reaches 70 percent,\u201d Agility managing director Amrita Banta told WWD. \u201cJapan is the most critical market at 81 percent; China is the least at 51 percent, though even there it remains a majority view.\u201d<\/p>\n\n\n\n

Indeed, 47 percent of rich clients who buy handbags say they have purchased from brands they describe as high quality and premium, but positioned below traditional luxury brands.<\/p>\n\n\n\n

\u201cSo the data does suggest some resentment or frustration, but it is expressed through sharper scrutiny, trading across price tiers and a higher bar for what justifies a luxury price tag, rather than a broad withdrawal from the category,\u201d Banta noted.<\/p>\n\n\n\n

Prices of some iconic luxury handbags rose between 50 percent and 70 percent since 2019 \u2014 and on top, many viral social-media posts have cast a spotlight on mediocre product quality, clandestine Chinese production, and what HSBC analysts dubbed \u201cgreedflation.\u201d<\/p>\n\n\n\n

\u201cOver the past few years, price increases became so aggressive that a real disconnect emerged between customer expectations and what many brands were delivering,\u201d according to Berg. \u201cThe Italian production and subcontracting scandals certainly did not help either \u2014 they weakened one of luxury\u2019s core promises around craftsmanship and quality, and ultimately trust.\u201d<\/p>\n\n\n\n

Berg pointed to such Instagram accounts as Tanner Leatherstein, which dissects luxury leather goods to assess material and construction quality, and calling out shortcomings; Diet Prada, which often spotlights supply-chain issues and poor labor practice; and certain Chinese manufacturers uncovering repair scandals and supply-chain irregularities.<\/p>\n\n\n\n

\u201cIt is quite damaging because it reinforces a perception that many consumers already had,\u201d he said. \u201cSeveral industry experts have told me that the sharp increase in production volumes has inevitably led to weaker control and, in some cases, lower product quality.<\/p>\n\n\n\n

\u201cIt is obviously problematic when consumers start believing they can find better quality on resale platforms like Vestiaire than in the actual boutique,\u201d he added.<\/p>\n\n\n\n

Daniela Ott, founder of Agape Strategy Consulting and an expert in the resale market, said the segment gives consumers access to \u201cbetter perceived value: often a stronger product, better materials and a more acceptable price.\u201d<\/p>\n\n\n\n

\u201cResale value has become one of the clearest tests of a product. If an item holds its value, it says something very powerful about its quality, longevity, desirability and cultural relevance,\u201d she said in an interview. \u201cIf it does not, it raises the question of whether the product was really built to last \u2014 or whether the product and its price was mostly marketing.\u201d<\/p>\n\n\n\n

Ott cited a recent ThredUp finding that 39 percent of consumers say they would buy new apparel if they knew it had a high resale value.<\/p>\n\n\n\n

Isabelle Guichot, CEO of SMCP Group, parent of the Sandro and Maje fashion chains, recently told a Faume webinar that she monitors resale prices<\/a> as a key performance indicator, or KPI.<\/p>\n\n\n\n

In Ott\u2019s estimation, in 80 percent of cases, the consumer \u201cis going for the second-hand item because it\u2019s just a better price and value, and better quality.\u201d<\/p>\n\n\n\n

In the case of leather handbags, some consumers believe older bags were made with heavier leathers, stronger hardware, better linings or more durable finishes.<\/p>\n\n\n\n

\u201cWhether or not this is technically true, the perception itself has become a real resale selling point,\u201d Ott said.<\/p>\n\n\n\n

In her view, quality is important for all consumer cohorts.<\/p>\n\n\n\n

\u201cNew luxury buyers often judge quality through the full brand experience: the boutique, the service, the packaging, the storytelling, the status around the product,\u201d she said, noting this cohort also buys into novelty.<\/p>\n\n\n\n

By contrast, buyers of previously owned items are more pragmatic and forensic. \u201cThey compare leather, hardware, lining, production year, condition and price,\u201d in addition to the overall condition, authenticity and desirability.<\/p>\n\n\n\n

Experts agree that consumers who feel betrayed by exorbitant prices and\/or quality shortcomings don\u2019t necessarily stop loving luxury. They simply move to resale platforms, vintage dealers or brands at price rungs below luxury.<\/p>\n\n\n\n

\u201cI do think brands like Pol\u00e8ne, Coach, Zadig & Voltaire and Sezane have benefited from this, too,\u201d Ott said, also noting that high-street chains like Cos and Zara also have \u201cupped their game\u201d with brand elevation strategies.<\/p>\n\n\n\n

MAD\u2019s Revis said the jewelry segment has also undoubtably benefited since it embodies \u201ca more durable investment, and a rather safe one with the price of gold continuously increasing.\u201d<\/p>\n\n\n\n

Andreas Murkudis, who runs a namesake specialty store in Berlin, said he recently stopped carrying several designer brands \u2014 The Row, Jil Sander and Rick Owens among them \u2014 due to prices he contended are untenable.<\/p>\n\n\n\n

\u201cWith the big brands selling a white T-shirt for 800 euros, it\u2019s also a problem for me,\u201d he said, noting having a fashion designer brother, Kostas, has given him further insights into the true costs of manufacturing apparel. For example, a woven shirt costs about 35 to 80 euros to produce, he said.<\/p>\n\n\n\n

The retailer prefers to hunt down brands in Italy, Japan and further afield that offer good style, craftsmanship, finesse and fair pricing \u2014 and his customers are fully on board. \u201cWhen the product is good and they feel the quality and the price is OK, then they don\u2019t care about the brand name,\u201d he said.<\/p>\n\n\n\n

Agility\u2019s Banta argued that affluent and HNW consumers now have a broader, more nuanced view on quality, and are paying closer attention to authenticity of origin, ethical credentials, sustainability practices and the credibility of craftsmanship claims.<\/p>\n\n\n\n

\u201cAt the same time, some consumers are viewing luxury purchases more pragmatically, as assets or functional investments that should hold value, retain relevance and justify their premium price,\u201d she said.<\/p>\n\n\n\n

Banta stressed that luxury brands must make the price-quality equation more visible \u2014 and credible.<\/p>\n\n\n\n

\u201cThat means reinforcing craftsmanship, material excellence, durability, after-care, provenance and scarcity in ways consumers can understand and verify,\u201d she said. \u201cEvery price increase needs to be matched by a stronger value story, a stronger product experience and a clearer sense of integrity.\u201d<\/p>\n\n\n\n

Experts agree that luxury brands cannot cut prices of iconic products, but they can increase functionality, service, design and the quality of the buying experience.<\/p>\n\n\n\n

\u201cAt the same time, brands need much tighter control over their supply chains,\u201d Berg argued. \u201cApart from a few players like Herm\u00e8s and some smaller specialized Italian manufacturers, most luxury companies do not fully own their production. That makes transparency and oversight even more critical \u2014 from sourcing of materials all the way to final assembly.\u201d<\/p>\n\n\n\n

\u201cHigher upstream integration into direct manufacturing and a tighter control of the supply chain are required to support craftsmanship claims,\u201d Bernstein\u2019s Solca agreed. \u201cIn other words, brands need to put money where their mouth is.\u201d<\/p>\n\n\n\n

<\/p>\n\n\n\n

\u201cWhy Luxury Brands Are Grappling With the Price-value\u00a0Equation\u201d courtesy of\u00a0Miles Socha<\/em>\u00a0in WWD (June 2, 2026). \u00a9 2026 WWD. All rights reserved.<\/em><\/p>","protected":false},"excerpt":{"rendered":"

Experts recommend a return to the fundamentals of luxury \u2014 genuine craftsmanship, authenticity, quality and durability. Perhaps the thorniest of challenges for luxury brands in an already tough market is restoring a clearer sense of value for money after rampant price hikes and some lapses in quality left many consumers frustrated \u2014 or worse, industry experts say. \u201cThe remedy […]<\/p>\n","protected":false},"author":5,"featured_media":11845,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,41],"tags":[49,46,44,45],"class_list":["post-11844","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-consulting","category-news","tag-hnwi","tag-insights","tag-luxury","tag-wealth"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\n\t\t\n