image through Bundle
Denying it is impossible: even with many of the economy at a standstill, luxury goods continue to grow and the products that make up the marketplace continue to reach higher and higher price points. all of the spouses and boyfriends (not to mention jealous officemates and frienemies) out there who nearly keel over at the price labels on handbags ought to take a look through the back pages of any major us fashion magazine – accessories are expensive, but clothes are out of this world.
Considering that, it’s no surprise that a recent survey by bundle and Citi found that Oscar de la Renta’s Madison Avenue flagship is the most expensive store in the country. When cocktail dresses start at much more than a thousand dollars and in some cases stretch up into the five figures, it’s not hard to see where the boutique’s $3217 average ticket comes from. Naturally, I have a few theories about these results.
When a survey like this comes out, it can practically always tell you much more about the luxury company than meets the eyes, as long as you’re prepared to dig a little bit. In this case, the second store on the list, Giorgio Armani’s Madison Avenue flagship, is just as essential to my conclusions. What do they have in common? Ready-to-wear company that far outpace their accessories sales.
Think about it: When someone says “Chanel” to me, I think of a bag. The same thing happens with practically any major brand; the bags (and in some cases shoes) are the most recognizable pieces of the brand’s public image to consumers because they have a much larger potential customer base than a $5,000 cocktail dress.
Except when it concerns de la Renta and Armani, that’s not true. many brands need the income from accessories (and cosmetics) to balance out the slim profits that are earned from selling nose-bleedingly expensive clothes to a small stable of customers, but some companies have such a strong name in ready-to-wear (for Armani, I would think of that menswear – suits in particular – makes a big contribution as a well) that the relatively modest accessories sales probably push their average sales prices upwards.
In many stores, the opposite is true. I’d be prepared to bet that much more people go into Prada with the objective of purchasing nylon handbags or moderately priced small leather goods than people who are shelling out for runway ready-to-wear, but the outrageously luxurious, carefully comprehensive suits, cocktail dresses and ball gowns are the things that draw people into Oscar de la Renta. So the next time someone scoffs at you for purchasing a thousand dollar handbag or $700 pair of shoes, just tell him or her that you’re actually bringing down the average, thankyouverymuch.