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If you're interested in the craft/quality that goes into these products (or frequently doesn't), "Tanner Leatherstein"'s YT channel is a suggested watch. https

If you're interested in the craft/quality that goes into these products (or frequently doesn't), "Tanner Leatherstein"'s YT channel is a suggested watch. https://www.youtube.com/@tanner.leatherstein https://www.youtube.com/@tanner.leatherstein He dissects luxury leather products. Tanner has two recent videos on Hermès that seem related enough to mention here: What does Hermès actually sell? A closer look into astronomical price tags of the luxury legend. https://www.youtube.com/watch?v=D_f0jFs22Ts https://www.youtube.com/watch?v=D_f0jFs22Ts Discover the real value of Hermès: Unraveling the mystery behind luxury prices. https://www.youtube.com/watch?v=6fkzpyHJ77g https://www.youtube.com/watch?v=6fkzpyHJ77g

yobbo 2y ago
The reason behind value is similar to the value of a military/exclusive medal. It's a "legitimate" way for the owner to signal prestige.
- jsty 2y ago
  In economics terms - a Veblen good https://en.wikipedia.org/wiki/Veblen_good https://en.wikipedia.org/wiki/Veblen_good
- virtualritz 2y ago
  True but not entirely. There are big quality differences and often luxury brands do use material and labor that makes a bag cost hundreds of dollars or euros to produce. But not all do and sometimes they flounder or cheat on certain products. The margin between that production cost (Tanner always gives an estimate) and the actual price is definitely a function mainly of the prestige associated with the brand. I.e. other factors such as shipping, display (think flagship stores), advertising & sales labor costs play much less of a role in the luxury segment.
  - deleted 2y ago
    [deleted]
- rvba 2y ago
  There are a lot of people who will pay a lot of money to show that they are better than others. Still the best shop was the one who sold stuff only to fit people - didnt have big sizes (I always wondered if they didnt sell big sizes at a premium).
  - lupire 2y ago
    No, because they don't want fat people tarnishing their brand.
    - Aeolun 2y ago
      Too hard to make them look good? I don’t think it’s strictly impossible.
kjellsbells 2y ago
I can understand why a bag that has been hand sewn by skilled artisans in some tiny town in Italy (say) might be expensive. Skills take time to learn, and the labor is costly. (The leather itself seems to be a negligible fraction of the cost of production.) What I dont get is what stops Chinese manufacturers from recruiting equally skilled local artisans in Asia to create their own luxury brands, and what stops Hermès from outsourcing their own bag manufacturing to those artisans in China instead or France or Italy. Its not like China doesnt have a rich craft tradition. Do those domestic luxury brands exist? If so, why arent they sold for export?
- ceejayoz 2y ago
  > What I dont get is what stops Chinese manufacturers from recruiting equally skilled local artisans in Asia to create their own luxury brands, and what stops Hermès from outsourcing their own bag manufacturing to those artisans in China instead or France or Italy. A bag of this sort gets dramatically less valuable to the clientele if you cut the price by half. They don't want a cheaper version. If anything, they want it more expensive.
  - caycep 2y ago
    the French are good at finding answers to these questions, often to the benefit of themselves...see https://atelierwen.com https://atelierwen.com
  - newsclues 2y ago
    Yeah, luxury bags aren’t about buying a bag but owning an object that signals status. Making it cheaper or local or available to more people is not the goal.
    - roncesvalles 2y ago
      Beyond a certain price, all goods become jewelry.
  - jotux 2y ago
    >A bag of this sort gets dramatically less valuable to the clientele if you cut the price by half. They don't want a cheaper version. If anything, they want it more expensive. There's a name for this: https://en.wikipedia.org/wiki/Veblen_good https://en.wikipedia.org/wiki/Veblen_good
golergka 2y ago
This may not be the case for Hermes, but designer brands sometime also mean great and new design. Personally, I spend extra for Rick Owens and Balenciaga just because of the ideas they put into the looks.
deleted 2y ago
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yobbo 2y ago

The reason behind value is similar to the value of a military/exclusive medal. It's a "legitimate" way for the owner to signal prestige.

jsty 2y ago
In economics terms - a Veblen good https://en.wikipedia.org/wiki/Veblen_good https://en.wikipedia.org/wiki/Veblen_good
virtualritz 2y ago
True but not entirely. There are big quality differences and often luxury brands do use material and labor that makes a bag cost hundreds of dollars or euros to produce. But not all do and sometimes they flounder or cheat on certain products. The margin between that production cost (Tanner always gives an estimate) and the actual price is definitely a function mainly of the prestige associated with the brand. I.e. other factors such as shipping, display (think flagship stores), advertising & sales labor costs play much less of a role in the luxury segment.
- deleted 2y ago
  [deleted]
rvba 2y ago
There are a lot of people who will pay a lot of money to show that they are better than others. Still the best shop was the one who sold stuff only to fit people - didnt have big sizes (I always wondered if they didnt sell big sizes at a premium).
- lupire 2y ago
  No, because they don't want fat people tarnishing their brand.
  - Aeolun 2y ago
    Too hard to make them look good? I don’t think it’s strictly impossible.

kjellsbells 2y ago

I can understand why a bag that has been hand sewn by skilled artisans in some tiny town in Italy (say) might be expensive. Skills take time to learn, and the labor is costly. (The leather itself seems to be a negligible fraction of the cost of production.) What I dont get is what stops Chinese manufacturers from recruiting equally skilled local artisans in Asia to create their own luxury brands, and what stops Hermès from outsourcing their own bag manufacturing to those artisans in China instead or France or Italy. Its not like China doesnt have a rich craft tradition. Do those domestic luxury brands exist? If so, why arent they sold for export?

ceejayoz 2y ago
> What I dont get is what stops Chinese manufacturers from recruiting equally skilled local artisans in Asia to create their own luxury brands, and what stops Hermès from outsourcing their own bag manufacturing to those artisans in China instead or France or Italy. A bag of this sort gets dramatically less valuable to the clientele if you cut the price by half. They don't want a cheaper version. If anything, they want it more expensive.
- caycep 2y ago
  the French are good at finding answers to these questions, often to the benefit of themselves...see https://atelierwen.com https://atelierwen.com
- newsclues 2y ago
  Yeah, luxury bags aren’t about buying a bag but owning an object that signals status. Making it cheaper or local or available to more people is not the goal.
  - roncesvalles 2y ago
    Beyond a certain price, all goods become jewelry.
- jotux 2y ago
  >A bag of this sort gets dramatically less valuable to the clientele if you cut the price by half. They don't want a cheaper version. If anything, they want it more expensive. There's a name for this: https://en.wikipedia.org/wiki/Veblen_good https://en.wikipedia.org/wiki/Veblen_good

golergka 2y ago

This may not be the case for Hermes, but designer brands sometime also mean great and new design. Personally, I spend extra for Rick Owens and Balenciaga just because of the ideas they put into the looks.

deleted 2y ago

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