“Did you hear? Dior bags only cost $57 to make.” There were whispers after an expose revealed the conditions an Italian factory used by Dior and other brands for their leather good production. The allegations of worker abuse and low wages. Dior has come out and said that it does not produce their purses there, only men’s goods. The question still remains, “How much should luxury cost?”
In the definition put forth by Ko et al (2019), part of what makes a luxury item luxury is the ability to command a premium price. There is an argument to be made for luxury bags costing more because they cost more to make. Higher quality materials and higher worker wages factor in to that equation. But if the money isn’t going to workers, and quality is low, then what is the point of high prices?
Is assumed prestige enough to command a high price? Is it enough to charge a high price if you know your customers will pay it?
What justification do you want to see from brands on their pricing?
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A Wren Says 
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