Why Luxury Brands Raise Prices: Past Increases, Future Outlook, Market Impact, and the Best Items to Buy Now

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In recent years, prices of luxury brands have continued to rise, and more and more people are feeling anxious about why they are rising, when they will rise, and how much they will rise .

While rising raw material prices and a weak yen are well known, it is difficult to understand the relationship between actual price revisions and purchasing decisions.

In this article, we will organize the price increase history of major brands and future predictions, and explain the reasons for the price increases in an easy-to-understand manner.

We will also introduce the criteria for deciding whether to buy now, wait, or sell from the perspective of the impact on the used property market and asset value.

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Explaining the background behind why price hikes for luxury brands have become commonplace

In recent years, price increases for high-end brands have become a trend across the industry rather than a temporary one.

Prices have changed significantly compared to a few years ago, and more and more people are wondering why prices continue to rise.

The reasons behind this include rising raw material and labor costs, the weak yen, and pricing strategies by brands .

In this chapter, we will explain why price increases have become commonplace and their impact on the industry.

Why recent price revisions by luxury brands have attracted attention

Today's high-end brands are "assuming price increases"

-Price increases are becoming more frequent

・The increase per time is large

・The more famous the brand, the more frequently it is revised.

As a result, it has become commonplace for prices to suddenly increase without you even realizing it.
Price increases are not news, they are a given.
More and more people are checking whether the price has gone up yet or when the next one will be before deciding whether they want it or not.

Reasons why it is said to be a continuing trend rather than a temporary price increase

Key takeaway: High-end brand prices won't fall

・Price increase → Price becomes fixed → Next price increase

This process is repeated

Why prices keep rising

・Raw material and labor costs do not decrease

The impact of the weak yen continues

・Maintaining scarcity without increasing supply

High-end brands prioritize "preserving value" over "selling cheaply ."
It is more realistic to make decisions assuming prices will rise rather than waiting for them to "go down eventually."

History of price increases and price revisions for major luxury brands

Price increases for high-end brands have a clear history and trend, not just a feeling.

When we look at which brands have revised their prices, when, and by how much, we can see that these revisions have been made in a planned manner.

In this chapter, we will summarize the price increase history of major brands over the past few years and the differences in the size and frequency of price increases.

Use past price trends to help you make decisions about future purchases and sales.

Price increase history for major brands in recent years

Price increases for high-end brands are occurring in a linear fashion, not in discrete steps .

The flow is almost the same.

past
The price is lower than now

after that
-Prices are revised every few years
・Round up little by little

the current
- Prices will not return to previous levels

In other words, it's not just "expensive this time."
It continues to increase gradually over time.

Price increases and frequency vary by brand

The method of price increases varies from brand to brand.

・Raise it little by little frequently
・Raise your arms widely with space between them
・Raise only specific popular models

This difference is
The difference lies not only in raw material and labor costs, but also in strategies for maintaining supply and scarcity .

Knowing what type of brand it is will help you decide whether you should hurry or whether you can wait.

Future price increases predicted based on past price trends

What we can learn from past price movements is very simple.

After the price increase, the price will stabilize.
It is unlikely to fall in a short period of time
After a certain period of time, it will rise again

This process is repeated.

- Rising raw material prices
- Rising labor costs
- Impact of the weak yen

As long as these conditions continue, the reality is that there is little reason for price adjustments to stop .

That's why knowing past prices will help you make the right decisions in the future .

Breaking down and understanding why luxury brands keep raising prices

There isn't just one reason why luxury brands are increasing their prices .

In addition to rising raw material and labor costs and the weak yen, these factors are compounded by brand strategies to maintain supply and scarcity.

These factors are working together, making price revisions a continuous rather than temporary trend.

In this chapter , we will organize the mechanisms behind continued price increases by element and provide an easy-to-understand explanation of the criteria for making decisions.

Impact of rising raw material prices on product prices

First, a common misconception.

Raw material prices have risen = we had no choice but to raise prices

Here's what it actually looks like.

Raw materials have become more expensive → Lower quality or raise prices → High-end brands choose to "maintain quality"
→ As a result, prices increase

The important thing here is that price increases do not necessarily mean compromise .

There are ways to make it cheaper, but I didn't choose that.
This decision itself is the brand value .

Why rising labor and logistics costs cannot be ignored

High-end brand products often involve human intervention in many processes .

📌 Make
📌 Check it out
📌 Fix it

This process is not left to machines.

As a result, labor costs rise → production methods do not change → costs cannot be absorbed → price revisions occur

The structure is as follows.

Continuing to leave it to others = it won't get cheaper
This is the premise.

How a weak yen pushes up domestic retail prices

Overseas price (dollars/euro)
↓
Weak yen
↓
Only Japan looks cheap
↓
Filling the price gap
↓
Domestic price increase

It's not that Japan is the only country that is losing out.

We are adjusting for price discrepancies.

That is the price increase when the yen is weak.

As long as the yen remains weak, it will be difficult to find a reason to lower prices.

A brand strategy that limits supply and increases scarcity

This is the most high-end brand-like part.

Ordinary idea
→ If it sells, make it

High-end brand ideas
→ Even if it sells, we won't make it

Why?

Increased supply → Decreased scarcity → Decreased brand value

This is what I hate the most.

So, restrict supply → more people want it → it will still be viable even if the price goes up

Price increases are a result of this .

The idea of price revision to maintain brand value

Finally, just remember this.

For high-end brands , price does not equal cost plus profit.

Price = position .

・Do not lower
・Don't get lost
・No shaking

Because of this consistency,
It also remains valuable on the second-hand market.

The price increase is not an attempt to make it harder to sell, but rather to lock in value .

Is there a chance that prices will fall after the price increase?

It's natural to think, "If prices continue to rise like this, they'll eventually go down."

In fact, there have been cases in the past where temporary price adjustments or price drops have occurred.

However, there are clear conditions for price reductions, and there are some brands that hardly ever reduce their prices.

In this chapter, we will use actual examples to organize the reasons why prices have fallen and why they have not fallen .

Past examples of price adjustments and reductions

To conclude, there are cases where even high-end brands have seen their prices drop.
However, this is only possible under exceptional circumstances.

Main patterns of price adjustments observed

✔ A time when global demand temporarily cooled

✔ A situation where the exchange rate suddenly swung to a stronger yen

✔ Adjustments to only some lines and limited categories

✔ It is closer to a substantial adjustment than a fixed price.

The important thing to note here is that there are very few examples of classic bags or flagship models being consistently discounted .
In many cases, the only changes are that "the pace of price increases has slowed" or "prices have been adjusted in some areas."

👉Across -the-board price cuts = almost never happen
Keeping this fact in mind will help you make less mistakes in your decisions going forward.

Differences in brands and conditions that are less likely to result in price reductions

On the other hand, brands that rarely drop in price have something in common.

Characteristics of brands that are less likely to lower prices

✔ Supply is intentionally limited

✔ Demand remains strong even in the second-hand market

✔ Classic models are recognized as valuable assets

✔ A clear policy to protect brand value through price

The more these conditions are met, the more likely it is that price revisions will be adjustments that assume prices will continue to rise , rather than "downward adjustments."

In other words, the decision to "wait until the price goes down" can sometimes mean missing out on an opportunity.

By understanding this difference,
✔ Should I buy now?
✔ Should I wait?
✔ Should I switch to used?

You will be able to judge by structure rather than by intuition .

Impact of high-end brand price hikes on the second-hand market

The price increases for high-end brands are not limited to new product prices.

As new prices rise, the used market price also rises, creating a trend that further increases demand.

The combination of a weak yen, overseas demand, and supply shortages has created a structure in which second-hand prices are less likely to fall.

In this chapter, we will clarify the mechanism and clarify the decision-making criteria for buyers and sellers .

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How rising new prices drive up used car prices

The first thing that's happening is price correlation .

When new prices rise...

New products are too expensive to afford → Demand shifts to used products → Used product inventory decreases
→ Second-hand market prices will rise

This trend is not temporary, but will become more fixed as prices continue to rise .
In particular, the price difference between new and used items tends to narrow for standard models and popular lines.
The perception that "it's normal for even second-hand items to be expensive" becomes more easily established in the market.

As a result, the second-hand market tends to follow new prices .

The impact of the weak yen and overseas demand on the used goods market

The next factor that is having an effect is the weak yen and overseas demand .

When the yen weakens

・Second-hand Japanese brand items seem cheap

・Overseas buyers will become more active in purchasing goods

・Domestic inventory is likely to decrease

In particular, the second-hand market in Japan
✔ In good condition
✔ Strict authenticity control
✔ Standard models are easy to find

It has been highly rated, and when the yen weakens, demand from overseas increases dramatically .
As a result, domestic used car prices are unlikely to fall, and instead tend to continue to rise.

A supply shortage is supporting used car prices

A final, often overlooked issue is supply .

High brands are

・Do not easily increase production volume

・The more popular the model, the more limited the distribution volume.

For this reason, even in the second-hand market, the situation is one in which "the number of people wanting things is increasing, but the amount of things is not increasing."

Demand > Supply
As long as this balance remains intact, second-hand prices are unlikely to fall significantly.

In other words, the current second-hand market is
✔ New product price increase
✔ Weak yen
✔ Overseas demand
✔ Short supply

These factors are all occurring at the same time, creating an environment that is likely to support prices .

Changes in consumer purchasing behavior revealed by the secondhand goods market

The reason why second-hand brand-name items can be sold at high prices is due to a change in the way people buy things.
As prices continue to rise, second-hand goods have become an option that people are happy with, rather than just a way to buy cheaply .
Purchasing behavior that involves using new and used items depending on the purpose and even considering resale is becoming more common.
In this chapter, we will summarize the changes in consumer psychology that can be seen from the used goods market.

Why do second-hand brand items sell even at high prices?

The phenomenon of "second-hand items being expensive" is no longer an exception.
The reason is simple: the role of the second-hand market has changed .

[Previously]

Used = Where to buy cheaply

↓

【the current】

Used = where value is confirmed

As high-end brands continue to raise prices, the price of new products continues to rise.

As a result, the second-hand market has become priced based on values that have already been confirmed .

Popular models with limited supply are difficult to obtain new, but second-hand models are appreciated for being usable and selling quickly .

What is emphasized in the current second-hand market is not "cheapness" but "reliability" and "liquidity . "

Consumer psychology: choosing between new and second-hand purchases

Consumers don't choose between new and used based on instinct.
They are clearly used according to the purpose.

✔ Case of choosing new products

I want the latest model

Gifts and milestone purchases

・Long-term holding assumption

✔ When to choose second-hand items

-Focus on the balance between price and value

・I want to be sure to get a popular model

- Considering future sales

The reason behind this distinction is the awareness of the risk of buying new products after prices have increased .
People want to avoid making a mistake when purchasing by choosing used items, which have a stable market price, rather than new items that have just had their prices increased.

The second-hand market has become a more discerning option , rather than a "compromise."

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The spread of purchasing behavior based on resale

A distinctive feature of current purchasing behavior is that people "think about selling before they buy . "

Points to look at before purchasing

・Past used market prices

・Price increase history

・Supply volume and scarcity

・Stability of brand value

To purchase after checking these,
Branded goods are treated as assets rather than "consumption."

Especially for brands that continue to raise prices,
- Value is unlikely to decrease after purchase
-Easy to predict the selling price

This gives people a sense of security, and purchasing behavior with the assumption that the product will be resold has become the norm.

As a result, the secondhand market is becoming increasingly important as an "exit" for purchasing behavior .

Choosing a branded bag from an asset perspective

High-end brand bags are seen not only as fashion items but also as items that tend to retain their value.
Even as prices continue to rise, models that remain stable in price maintain stable values in the used market.
In this chapter, we will organize the reasons why asset values tend to be maintained and clarify the perspective of "choosing based on value."
Changing your way of thinking will change the way you approach brand bags.

Common features of brand bags that tend to maintain their asset value

👉Conclusion

✔ Repeated price hikes

✔ Classic and popular models

✔ Low supply

✔ Fast turnover in the second-hand market

A bag that has all these features is unlikely to lose its value the moment you buy it .

The rise in new product prices will create a "ceiling," making it difficult for prices to fall in the second-hand market.

The importance of judging based on value, not price

❌ Common thinking

I want to buy it as cheaply as possible

⭕ Current thinking in the luxury brand market

How much will it sell for later?

With prices continuing to rise, it is less risky to choose items that will retain their value even if you buy them at a high price.

The important thing to consider is not "expensive = loss" but "value does not decrease = good value for money . "

If we broaden our perspective, we will see that high-end brands are not the only options that retain value.

In recent years, remade products that are not mass-produced and exist as one-of-a-kind in the world have also been given a different kind of value.

One-of-a-kind items, which do not see an increase in supply on the market, are less likely to get caught up in price competition and are popular among people who value "uniqueness."

Choosing based on the background or uniqueness of a brand rather than its name is also an option when thinking about value.

We also provide detailed information here about items that are not mass-produced and have a background and story.

👉See the concept of one-of-a-kind remade products (link)

Why you should think about practical items and financial purposes separately

👜 Practical items → Emphasis on ease of use and personal preference

💼 Asset purpose → Emphasis on brand value and second-hand market price

There is no one bag that does it all perfectly.

That's why satisfaction is the priority for everyday use, and whether it can be sold is the priority for assets.

By dividing the roles, it becomes less likely to fail.

Ranking of products you should buy now based on trends in the second-hand market

In today's high-end brand market, products are chosen based on "what will last" rather than "what you like."

As prices continue to rise, the three factors of new product prices, used product market prices, and supply volume are all linked, and the difference between products whose value is determined the moment they are purchased and products whose value increases over time is becoming clearer.

In this ranking,
✔ Are you vulnerable to price increases?
✔ Is it moving quickly on the second-hand market?
✔ Is the price easy to read when selling?

Based on actual trends in the second-hand market , we will organize products that are worth choosing now.

Selection points based on price increases and second-hand market prices

Nowadays, whether or not it makes sense to buy is determined by numbers and trends , not by intuition.
Products that tend to be highly valued in the second-hand market share common criteria.

✔ Three criteria to check

- Is there a history of price increases?
→ Brands and models that have had their list prices revised repeatedly are less likely to see their second-hand prices drop.

-Is the second-hand market price stable?
→ It is important that the stock is trading at a fixed price, not a temporary price increase.

Is the supply limited?
→ Models that are produced in small numbers or have not become standard are more likely to maintain their rarity.

The more a product satisfies these three points,
"You can read the value after you buy it" = a low-risk choice .

Products whose value is likely to fluctuate in the short term and products suitable for long-term holding

In the second-hand market, the best way to hold each item varies.
If you choose something that doesn't suit your purpose, your satisfaction and resale value will likely be affected.

▼ Suitable for short-term use (fast-moving type)

・A popular model

- Products that have recently increased in price

・A standard line with a fast turnover in the second-hand market

→ It's easy to choose based on the assumption that you will use and sell it.

▼ Suitable for the long term (value accumulation type)

・A model that has a solid reputation as a classic

・Products whose demand remains stable over the years

・Imaginary items of the brand

→ The more you own it, the more stable its value becomes.

How to determine the best time to buy and sell

With prices of high-end brands continuing to rise, buying and selling decisions can no longer be made on gut feeling.

Price revisions, the second-hand market, exchange rates, and supply all come together to clearly separate the times to buy and the times to avoid.

In this chapter, we will clarify the decision-making criteria for those considering purchasing and those who already own a property.

Here we will clarify the criteria for turning doubt into "decision."

Criteria that people considering purchasing should keep in mind

The key thing to consider before purchasing is not whether you want it or not, but whether it fits the current market conditions .

▼ Pre-purchase checklist

Has a price increase been implemented recently?
→ Immediately after a price revision, the used market may not have caught up yet.

-Is the used market price approaching the list price?
→ The smaller the price difference between new and used items, the lower the risk of price drops.

・Is it a model with a stable and low supply?
→ Even if a product is a standard item, if it is produced in limited quantities, it is more likely to remain rare.

・Do you assume you will use it or keep it?
→ If you plan to use it frequently, you should prioritize turnover rate, but if you plan to hold it, a price-stable model is suitable.

If the three points of "price increase × second-hand market price × supply" are all met, it will be a choice that you are less likely to regret after purchasing .

Perspectives for those who already own a property when considering selling

The important thing about timing to sell is not whether you're not going to use it anymore, but whether the market values it highly .

▼ Signs that you should consider selling

- Immediately after the new product price is revised again
→ This is a time when second-hand market prices are likely to rise.

・Overseas demand is strong and prices are on the rise
→ When the yen is weak, domestic prices tend to remain high.

・The distribution volume of this model is beginning to increase
→ Prices tend to peak before they become available.

・Rumors are circulating about the next model and specification changes.
→ If you act before the switch, your rating is less likely to drop.

Don't wait until the price drops before thinking about selling.
It's important to have it as an option while it's still highly rated .

summary

The price increases for high-end brands are the result of a combination of raw material and labor costs, the weak yen, and supply adjustments, and are likely to continue in the future.

As price revisions continue, prices are rising not only for new products but also for used products.

On the other hand, more and more people are attracted to remade items that are unique and have value, regardless of price or brand name.

If you understand the trends in the market, you can make smart choices based on the value criteria that suit you, including branded, second-hand, and remade items.