GUCCI
According to data from HSBC (Hongkong and Shanghai Banking Corporation) cited by Vogue Business, the average price of personal luxury goods rose by 52% between 2019 and 2024. During this period, the price gap between luxury brands and the mass market widened significantly, and some customers stopped making purchases.
Gucci was one of the first brands to take the step of directly lowering its prices. The company reduced the price of its medium-sized Mercato leather bag by approximately 20–25%. This move is in line with the strategy of Kering’s new leadership, which aims to boost Gucci’s sales and expand the brand’s audience.
However, the industry is not yet rushing to lower prices on its most recognizable products. Reducing the prices of iconic models like the Chanel Classic Flap or the Lady Dior could undermine their status among the wealthiest customers and also lower the value of similar items on the secondary market.
Experts suggest a different approach—changing the brands’ pricing architecture itself. Instead of lowering prices on iconic models, brands can release new products made from different materials or in smaller sizes, or create separate, lower-priced lines. Some brands are already following this path. For example, Burberry has launched a new line of handbags in a more affordable price segment without lowering the prices of existing models.
After several years of rapid price increases, luxury brands are now trying to strike a balance between making their products accessible to a wider audience and maintaining the premium status of their goods.
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