Raluca Comanita’s Post

The Real Cost of Luxury: Unveiling the Truth Behind High-End Pricing Have you ever wondered why luxury goods come with such hefty price tags? It’s a question many of us have pondered. Take Dior, for example. Their $2,000 bags actually cost only $57 to make. The real cost lies in their branding and marketing efforts, which create an aura of exclusivity and prestige around their products. It’s important to note that luxury brands like Dior do use higher-quality materials, but the bulk of what you’re paying for is the brand name and the story behind it. Interestingly, these brands often outsource labor to cut costs, which has led to legal troubles for some. Dior, among others, has faced scrutiny for using shady third-party facilities that underpay their workers. This practice underscores the fact that you’re often paying for the brand’s image more than the product itself. In my latest video, I dive into the details of how these price tags are constructed and what you’re truly paying for when you buy luxury items. Watch the video and let me know your thoughts! Would you like to uncover the real prices behind other luxury items? Drop your suggestions in the comments below. #LuxuryRevealed #TransparentPricing #CreaseGroup #Branding #LuxuryGoods #CostAnalysis #Marketing

Dior's Pricing Strategy: A Case Study in Luxury Branding I recently came across an intriguing report about Dior's pricing strategy that I'd love to share and discuss with my network. It highlights how Dior purchases products at around ₹4,700 and sells them at over ₹2 lakh. This significant markup raises questions about the dynamics of luxury branding and the perceived value of high-end products. Key Points to Consider: 1. Brand Value and Exclusivity: Dior's brand carries immense prestige, which justifies a higher price point. The luxury market thrives on exclusivity and the allure of owning something few can afford. 2. Cost of Quality and Craftsmanship: The cost of raw materials is only a fraction of the total expense. The meticulous craftsmanship, design innovation, and quality control add substantial value. 3. Marketing and Distribution Costs: High-end marketing campaigns, celebrity endorsements, and exclusive retail locations also contribute to the final price. Discussion Points: - How do luxury brands balance cost and perceived value? - What are the implications of such pricing strategies on consumer behavior? - Can similar strategies be applied in other sectors to create a premium brand image? I'd love to hear your thoughts and insights on this topic. Let's dive into the world of luxury branding and discuss the elements that make it so fascinating! #LuxuryBranding #Dior #BusinessStrategy #MarketingInsights #ConsumerBehavior

👜✨ The Power of Branding: Dior ✨👜 Recently, an investigation revealed that Dior paid only $57 to produce handbags that retail for about $2,800. This stark contrast highlights the immense power of branding. 🌟 In the luxury world, what you're paying for isn't just the product—it's the name on the label, the prestige, and the status it confers. 🏷️🔝 The meticulous branding, marketing, and heritage associated with these items elevate their value far beyond the cost of production. This is a reminder of how brands can transform everyday items into coveted symbols of luxury and exclusivity. It's not just a bag; it's a statement. 💼💬 #Branding #LuxuryFashion #Dior #MarketingPower

Who knew that luxury could be just a click away? Christian Dior has elegantly embraced AR (augmented reality) to transform how we experience high-end shopping online. Their innovative "Rose des Vents" campaign introduced a virtual try-on for exquisite jewelry, blending luxury with cutting-edge technology. What sets Dior apart? Their commitment to maintaining brand prestige online. By ensuring that every detail, from the color to the fit, mirrors the in-store experience, Dior enhances customer confidence and elevates the perception of their brand as a true luxury powerhouse. This blend of tradition and technology not only increases engagement but also invites us to dream a little bigger about the possibilities within the digital landscape. Have you tried something like this? Read more about it https://lnkd.in/gzRCdXqm #LuxuryBranding #ChristianDior #AugmentedReality #Digitalinnovation #OnlineShopping #Retail #AR #RetailExperience #BrandActivation #Marketing #Tech #LuxuryTech

Even if You have all the Money to buy this Luxury brand, your chances of getting an Invitation to buy are same as that of an undergrad applicant getting into an IIT (<<1%). Hermes and the Art of Exclusivity. How Hermes, the iconic luxury brand, has mastered the art of desire & how does it maintain its luxury allure while keeping its products so exclusive? Here’s a peek into their high stakes play: Scarcity Bias: They don't just sell; they create a buzz. Their coveted Birkin bags aren’t displayed openly—they’re shrouded in mystery with a long waitlist. You can’t just walk in and buy one; patience and loyalty are part of the game. Exclusive Access: To get your hands on a Birkin or Kelly, you must first build a buying history and establish a profile that reflects your commitment to the brand. Some say that HERMES also demands you buy less popular items before you can access the iconic pieces. This ‘Peihuo’ strategy (also called tying) has its share of controversy & criticism as well. The counter argument is about maintaining quality and exclusivity, as against manipulating the market. So, if you’re eyeing this brand, you will need lots of loyalty and even more patience...(& still no promises) To know more on this, go ahead and search for these terms - ''...How Hermès Torments (it's) Customers....'' ''...Torment Your Customers (They’ll Love It)..'' - HBR & so on... #LuxuryRetail #Cognitivebias #ConsumerBehavior Image courtesy Bing

Next time you are at Louis Vuitton or Christian Dior store at Delhi’s Emporio mall, and are holding a handbag with a price tag of Rs 3 lac and wondering, what is the actual cost of producing the handbag: well it is one tenth of the selling price: Rs 30,000, maybe little lower than that. You still would buy it for a number of reasons; from brand appeal to appeal to your vanity and what it can do for you socially. However, a storm is raging now; questions are being raised about the ethics of selling a product with such high margins. This is simply a result of the size of the luxury goods market now. I think we will hear more about in days to come, but nothing will change on the ground. #luxurygoods #luxurygoodsmarketing #christiandior #louisvuitton

Luxury Brands' SECRET Tactics to Hook You! Uncover the secret business hacks luxury brands like Louis Vuitton, Dior, and Rolex use to entice customers! Explore the art of product scarcity and exclusivity that makes these brands irresistible. Join us for an eye-opening journey into the world of luxury marketing tactics! #LuxuryBrands #BusinessHacks #MarketingSecrets #ProductScarcity #Exclusivity #LouisVuitton #Dior #Rolex #LuxuryMarketing #ConsumerPsychology

"𝑰𝒔 𝒊𝒕 𝒘𝒐𝒓𝒕𝒉 𝒊𝒕? 𝑻𝒉𝒆 𝒔𝒕𝒂𝒈𝒈𝒆𝒓𝒊𝒏𝒈 𝒎𝒂𝒓𝒌𝒖𝒑 𝒐𝒏 𝒍𝒖𝒙𝒖𝒓𝒚 𝒃𝒂𝒈𝒔 𝒓𝒂𝒊𝒔𝒆𝒔 𝒆𝒚𝒆𝒃𝒓𝒐𝒘𝒔." Did you know that Dior pays around 𝑼𝑺𝑫 57 to its suppliers to make a bag that sells for a staggering 𝑼𝑺𝑫 2800? That’s nearly 50 times the manufacturing cost. This stark contrast has sparked a global debate: are we paying for the product, or are we paying for the brand? And is this pricing model justified? 📌𝐋𝐞𝐭’𝐬 𝐛𝐫𝐞𝐚𝐤 𝐢𝐭 𝐝𝐨𝐰𝐧: 👉𝑸𝒖𝒂𝒍𝒊𝒕𝒚 & 𝑪𝒓𝒂𝒇𝒕𝒔𝒎𝒂𝒏𝒔𝒉𝒊𝒑: Luxury brands often emphasize superior materials and exceptional craftsmanship. But does the production cost alone justify the price tag? 👉𝑩𝒓𝒂𝒏𝒅 𝑽𝒂𝒍𝒖𝒆: Much of the high cost comes from the brand’s reputation, history, and perceived value. When you buy Dior, you’re not just buying a bag; you’re buying into a legacy, an experience, and a status symbol. 👉𝑴𝒂𝒓𝒌𝒆𝒕𝒊𝒏𝒈 & 𝑰𝒏𝒏𝒐𝒗𝒂𝒕𝒊𝒐𝒏: Significant investments in marketing, research, and innovation also play a role. These brands lead in fashion trends and set standards in the industry. 👉𝑪𝒐𝒏𝒔𝒖𝒎𝒆𝒓 𝑷𝒆𝒓𝒄𝒆𝒑𝒕𝒊𝒐𝒏: For many, owning a luxury item is about exclusivity and identity. The premium price reinforces the exclusivity of the brand, making it more desirable. 𝐈𝐬 𝐢𝐭 𝐣𝐮𝐬𝐭𝐢𝐟𝐢𝐞𝐝? The answer depends on perspective. From a purely functional standpoint, the price difference may seem exorbitant. However, from a brand loyalty and value perspective, consumers often find the added value in the intangible aspects—status, quality, and the brand’s heritage. 𝑾𝒉𝒂𝒕 𝒂𝒓𝒆 𝒚𝒐𝒖𝒓 𝒕𝒉𝒐𝒖𝒈𝒉𝒕𝒔? Do you believe luxury pricing is justified by the brand value, or should it be more aligned with the production cost? 𝑳𝒆𝒕’𝒔 𝒅𝒊𝒔𝒄𝒖𝒔𝒔! #LuxuryBrands #PricingStrategy #BrandValue #Marketing #ConsumerBehavior #BusinessDebate #aviation #msme #enterprenuership

Let’s play Luxury Brand Fun Fact. 🌟 What does Cristobal #Balenciaga and #ChristianDior share the same thing in common? Answer: Birthday! 🥳🎂🎁 Cristobal Balenciaga was born January 21, 1895 and Christian Dior was born January 21, 1905. Yes, 10 years apart. And they both bear almost the same name “Cris and Chris”. 😆 Until the next fun fact! 💫 #LuxuryBrand #LuxuryLifestyle #LuxuryFunFact #TopBrands #LuxuryFounders #LuxuryStoryTelling