As you may know, I love a luxury bag purchase every now and then. But because they do cost a tall penny, I tend to do my research on what I put my money on and what not. Because here’s something that not many would want you to know:
- many luxury brands are changing their business models from luxury to a fast fashion model
- this means lowering the production costs to a minimum, while keeping prices high → bigger profits
- outsourcing production to fast fashion factories overseas instead of professional artisans in, for example, Europe means that the quality of a luxury brand bag drops drastically.
Let’s dig deeper into this to understand why putting enormous amounts of money on a luxury bag can be one of the stupidest things you can do right now.
Luxury brands = Fast fashion brands
It might sound like an exaggeration that luxury brands are becoming nothing more than fast fashion brands. And while that is not true for many brands, it is completely valid for some of the best known and established luxury fashion brands.
The main thing that differentiates luxury brands from the fast fashion business model is that they thrive on exclusivity, rarity, and meticulous craftsmanship.
But as we covered, when a brand goes public, its primary obligation shifts towards its shareholders, who expect consistent financial profit. This shift brings with it unavoidable pressure to prioritize short-term profits over the long-term maintenance of a brand’s product’s exclusivity and heritage.
What does this mean in reality? For example the following:
- To meet the financial expectations of shareholders, a brand increases production to boost sales and revenue.
- This move can dilute the brand’s exclusivity, as its products become more widely available.
- It also often means outsourcing production to cheap countries, which means that the quality of, for example, a luxury brand bag declines when quantity is prioritised.
- This can lead to luxury brands starting to source cheaper materials, which degrades the quality and craftsmanship that define the brand.
At the same time we see brands continuously raising their prices. If you really think about this equation, I’m sure you realize that these specific “luxury brands” are no longer nothing short of a scam.
Brand value is becoming extinct for public luxury brands
Since heritage and tradition are core components of a luxury brand’s identity, going public can endanger these aspects.
After going public the shareholders become a luxury brand’s priority instead of craftsmanship, integrity and their customers. We’ve seen what happens when shareholders push for continuous innovation to drive sales. This has led to some brands straying from their traditional designs and values.
While many brands have quickly bounced back after scandals, they lose a chunk of their most loyal customers, and the actual brand loses its value as a whole. This often puts the brand’s stock price into decline as well.
Another thing that has impacted public luxury brands has been introducing lower-priced lines into new product categories. This has already diluted some brands’ prestige and alienated its original customer base even further.
Luxury is about perception, and perception is heavily influenced by scarcity and mystique. A publicly traded company’s need for transparency and growth does not add up with this perception.
So, next time you’re about to buy a luxury brand bag, consider if it’s worth paying 3K for one that was made in a fast fashion factory in China.
Luxury brands’ quality has plummeted
Taking all of the above into account, it’s not a surprise that the overall quality of many established luxury fashion brands has plummeted.
This is often due to public ownership complicating the dynamic of luxury brands depending on visionary leadership and creative autonomy to maintain their unique positioning. Shareholders have a short-term outlook, desiring immediate returns on investment.
That goes completely against the long-term strategic planning necessary to maintain a luxury brand’s status. We have already witnessed conflicts between the creative vision of a brand’s leadership and the profit-driven motives of its owners.
At the end of the day, putting quantity over quality is never sustainable, let alone a profitable strategy especially in the long term. When one buys a luxury brand bag, they want it to match its price point:
- the bag has to endure the tooth of time and wearing
- it must be functional
- only the best materials should have been used in the bag’s creation process
- the bag should have been made by true artisans who appreciate the materials and the end product.
If even one of these boxes is left unchecked, the price of a luxury brand bag should be decreased accordingly. Not raised, as these luxury fast fashion brands currently do.
Does luxury fashion exist anymore?
With more and more luxury brands choosing the capitalistic route, their luxury status is at stake. In my personal opinion, many of the formerly known classic luxury brands, like Louis Vuitton, can’t claim to be so anymore.
But if more of them go down the same way, will luxury fashion brands just cease to exist?! Absolutely not. The concept of luxury will just change slightly. It’s already happening:
In the contemporary fashion industry, sustainability has emerged as a crucial factor that defines luxury. Traditional luxury fashion brands have long been associated with exclusivity, high quality, and premium pricing. But while capitalism and environmentalism do not coincide, this association is cracking.
So, we are instead seeing sustainable fashion brands increasingly being recognized as the real luxury brands of our time. How come?
Because they prioritize
- ethical practices
- environmental stewardship
- social responsibility
- high quality production
- and keeping manufacturing as local as possible.
A sustainably created luxury brand bag is worth the money, unlike classically known luxury pieces (unless they are vintage). Here are 3 reasons why sustainable fashion brands are the new luxury fashion brands:
- Quality & craftsmanship
Sustainable fashion brands emphasize high-quality, eco-friendly materials and meticulous craftsmanship. This often means investing in organic cotton, recycled fabrics, and biodegradable materials, like linen, that not only minimize environmental impact but also ensure durability and comfort.
The continuous attention to detail and artisanal techniques used in producing sustainable fashion pieces align with traditional luxury values. These are all things that traditional luxury fashion brands used to embody as well, but greed is a disease.
In addition, sustainable brands focus on creating timeless designs, like long-lasting luxury brand bags, instead of participating in fleeting trends. This approach results in pieces that are not only stylish but also durable, reducing the need for frequent replacements.
- Ethical and environmental way to operate
Luxury is increasingly being associated with ethical conduct. Sustainable fashion brands prioritize fair labour practices, ensuring safe working conditions, fair wages, and say an absolute no to child labour. Unlike brands like Dior.
Sustainable brands also actively work to minimize their environmental footprint. This includes
- reducing carbon emissions
- minimizing water usage
- eliminating toxic chemicals from their production processes.
Brands that adopt circular economy principles, such as recycling and upcycling, further demonstrate their commitment to sustainability. Such environmental stewardship adds a layer of integrity and responsibility to the concept of luxury. And from the customers’ point of view, it protects us as well.
- Transparency and authenticity
Transparency in the supply chain is a hallmark of sustainable fashion brands. Consumers are increasingly demanding to know where their luxury brand bag came from and how they are made.
Brands that provide detailed information about their sourcing, manufacturing processes, and labour practices build trust and credibility.
As a result, this level of transparency is becoming a new standard for luxury, as it assures consumers of the authenticity and ethical grounding of their purchases.
On top of all of the above, sustainable fashion brands often also have something that solidifies their brand value, but that traditional luxury brands have discarded:
Compelling stories that highlight their commitment to high quality and positive change! Authentic storytelling enhances the perceived value of these brands, setting them apart in the luxury market.
My recommendations: Best luxury leather bags
At the end of the day luxury isn’t about money. You can absolutely bring a little luxury into your wardrobe without emptying your entire savings account for that one luxury brand bag.
There are plenty of affordable brands, for example, in Europe that create immaculate, beautifully designed leather bags that last the tooth of time. And many of them are small businesses, which means that your chosen bag can be quite a unique piece to have.
To end this analysis into the downfall of traditional luxury brands I want to mention two leather bag brands that most people have never heard of, but should have! These are my personal favourites, and, as owner of bags from them, I can wholeheartedly recommend them.
Dajana Rodriguez
As the most successful fashion designer from Slovakia, it’s a shame none of us have heard of this brand. This gorgeous brand started out with designer handbags. Each bag is unique in shape and many of them have traditional Slovak motifs stitched on them.
The colours of Dajana’s bags are in one word delicious. I have the Ema Bohemian bag in white with a purple lid. And you know what: that bag has lasted in use much better than my Versace, which cost a shit-ton more!
So I am very happy with my Ema Bohemian, but not at all happy about the money I spent on what I thought was a luxury brand bag, but which hasn’t been the case in terms of quality…
Scuola del Cuoio
This is a bit of an unexpected one: a leather school in the heart of Florence in Italy. Situated a stone throw away from the Santa Croce cathedral, this leather school honours the centuries old Italian tradition of making leather goods.
In addition to still being an actual school, Scuola del Cuoio has a separate little shop that is accessible from the school’s courtyard. And that little shop is an absolute wonderland for anyone who appreciates a good quality leather bag!
When you buy your luxury brand bag from there you get to know exactly
- where the leather for the bag came from
- who made your bag
- how it was made.
THIS is luxury!
Final Thoughts
The inherent tension between the demands of public ownership and the core attributes of luxury brands have led to the destruction of traditionally known luxury brands.
The constant need for growth, profit maximization, and market expansion often undermines the exclusivity, quality, and heritage that have previously defined luxury.
Therefore, many luxury brands struggle to maintain their prestige and exclusivity after going public, which supports the assertion.
But never anything bad without something good: our perception of luxury is changing. And thus, so is the selection of brands we consider as luxury brands. Gone are the greed-infested world values and replaced by value-driven, ecological and ethical life values.
Sustainable fashion brands are the new luxury brands! Their price point is fully justified and transparent, so buying from them sure feels much more wholesome than buying from former ‘luxury brands’ (this comes from personal experience).
