Luxury’s Pricing Reality Check. There is a growing consensus that rampant price #inflation has weakened luxury’s value proposition, contributing to a collapse in demand. And leaders are starting to take action. More accessible #luxury players like Mulberry England, Michael Kors and Burberry have more leeway to address the situation head-on, as their chief executives’ recent comments show. For pure luxury players currently taking a hit — including Kering, LVMH and Richemont — the way forward is less clear. Luxury products are meant to be expensive; that they should feel like a stretch for all but the wealthiest consumers usually goes without saying. But even rich people don’t want to be taken for a ride. And data supports the notion that brands have pushed prices too far, too fast. Over the past 50 years, brands have historically raised prices by 5 to 7 percent annually, already more than twice the rate of inflation. Since the pandemic, most brands raised prices even faster, by a double-digit percentage annually. What can top luxury players do next? Lowering prices isn’t an option (at least not publicly), and brands are loath to bring back end-of-season markdowns that took years to phase out. Even talking about the notion of value-for-money feels antithetical for brands with a top-end positioning. #fashionnews #retailbusiness #businessoffashion #luxuryretail #gucci #burberry #lvmh #luxurygoods #luxuryfashion