Designer clothes have always been a luxury product, and their prices reflect that.
They’re not meant for the common market, and some models may be released under very exclusive conditions, including limited numbers and regional availability.
Understanding the cost dynamics of this market can be complicated.
The high price of designer clothes is mostly linked to their exclusivity and high quality. Brands invest a lot of money into their newest models and they want to ensure that they’re worn by people with a good fashion sense, or at least some established presence in the fashion community. A high demand is another reason for the high price.
1. Demand Is Always High
The fashion industry is huge. The market has been growing steadily over the years, and it’s unlikely to slow down anytime soon.
Reports indicate that the general luxury apparel market has been growing at a stable rate of about 3.5%. Many people are actively engaged in following popular brands and discussing their newest releases.
Companies know this and they adapt their schedules according to this situation, releasing a slow but steady trickle of new clothes onto the market. They also know how to set their prices in a way that still keeps them attractive without sacrificing potential sales.
Interest in designer clothing has been rising through time, and even challenging global events have not impacted that situation in any negative way.
As long as companies continue to meet the demands of their followers by releasing clothes that are relevant to their interests, they are guaranteed to enjoy a strong following.
2. It’s a Seller’s Market
There’s no room for bargaining when buying designer clothes. You either take it or leave it – and if you leave it, someone else will be ready to buy it not long after that.
The top brands in the fashion industry are in an attractive position where they can easily dictate the prices on the market and there’s nobody that can argue with their decisions.
Even in areas with a lot of active competition between different brands, you’re still going to see them keeping their prices relatively high. Many of these companies have implicit agreements behind the scenes that allow them to control the average prices on the market.
3. Designer Clothes Are Usually Not Mass-Produced
Most models on this market are not meant for mass production either. They are typically released in small quantities and sell out quickly.
That way, prices don’t decline over time and products don’t lose any of their perceived value.
This is important to major fashion brands, because if people know that they can just wait a few months to get a better deal, these products will not be as successful.
Not only that, but they won’t be seen as exclusive luxury purchases either. This can negatively affect a company’s image in the long term and cause them to lose some of its followers.
That makes it difficult to even obtain these clothes second-hand most of the time. That might be unfortunate for thrifty buyers looking for a good deal, but it definitely doesn’t hurt designer brands.
They know they can keep their prices high because people don’t have any other real options for buying their clothes in the first place.
4. You’re Paying for the Name
In many cases, you’re not just paying for the quality of the materials, you’re also paying a premium for the brand name itself.
This is not exclusive to high-end fashion. Many sports brands utilize a similar approach.
And as long as customers are willing to pay that extra price for the privilege of wearing something made by their favorite designer, that market is going to continue to thrive.
For many buyers, wearing something that was produced in limited quantities and sold out quickly comes with serious bragging rights.
Some see this as a pointless expense, but many would disagree.
Fans of designer brands have specific expectations towards the clothes they’re buying, and those demands can be hard to meet when shopping from other companies.
5. Materials Are Carefully Picked
That’s not to say that designer clothes are of poor quality though. Quite the opposite – they are often some of the best models you can get on the market.
That’s because high-end brands spend a lot of time evaluating different fabrics until they’ve picked the most appropriate options.
Some buyers seem convinced that buying designer clothing means you’re paying for the name and nothing else.
And while there’s a certain premium added to the price for that, as we mentioned above, that’s far from the full story.
If you insist on buying clothes that will last a long time without falling apart, and will look as good as new over the years, spending extra on designer choices is your best option.
That’s why you may sometimes see people buying designer clothes even though they’re not necessarily fans of the brand.
With markups of more than 100% being common on this market, it’s clear that a major part of the cost is not directly tied to materials.
6. If You’re Not Willing to Pay, Someone Else Will
And in the end, whether you – or any other individual buyer – agree with the prices is irrelevant to these companies.
They know that there will always be lots of potential buyers willing to buy their clothes without even looking at the price tags.
That’s the main market of these companies too. They don’t care that much about random individuals who occasionally buy some designer pieces.
Their marketing efforts are almost exclusively focused on targeting people who are deeply involved with that brand.
Designer clothing is a peculiar market with lots of unique factors. Clothes made by high-end brands will always cost more due to their name alone.
But they’re also made of high-grade materials that can last a long time, and they are designed to always look relevant regardless of current trends.
This can all increase the overall price significantly.
Companies know that they have a lot of playing room when setting their prices, because there will always be interested buyers lining up to buy whatever they’ve just released.