You might have heard the word inflation floating around the news, and the fashion industry lately. Inflation is an economic term defined as the price of goods and services increasing while the purchasing power of money is falling—basically, things are getting more expensive! And the fashion industry, specifically luxury goods, are taking a hit.
How does inflation affect the fashion industry?
You might have seen inflation occurring in fashion through the surge in prices for designer and luxury goods. Items that you have had your eye on for the last few months might be getting increasingly more expensive. The continuously increasing retail prices on designer goods is due to general production costs surging. This surge is in response to inflation in raw materials, manufacturing processes and increased transportation costs (like the cost of gas).
Brands such as Louis Vuitton and Chanel have seen a continual increase in the price of their classic bags every few months. Chanel specifically has increased their luxury handbag prices four times over the last two years. With French powerhouses like Louis Vuitton and Chanel hosting expert artisanal skill sets to effortlessly craft perfect goods, their production lines are undergoing increased demands and consequently, their prices are going up.
The days of finding a pre-owned Chanel bag on the secondary market for less than retail price, regardless of condition, appear to be numbered. Chanel bags are recognized for having high resale prices, and the good news is, this isn't going to change anytime soon.
Wait... why is this good? The pressure of inflation could hurt your favourite luxury houses, causing a slow for luxury stores as more and more people turn to cheaper or more affordable options such as consignment shops. So now is a better time than ever to consign with So Over It in order to ensure your bag gets the biggest buck!