The New Craftsmanship
Years of handbag price hikes by leading luxury brands has resulted in some truly staggering prices of late (journalist Amy Odell charts the rise in handbag prices here). Simultaneously, issues surrounding quality, craftsmanship and production of these handbags has led to a very public reckoning for several brands. Even LVMH had to play defense with investors last month as it became public that a Dior handbag purportedly costing just $57 to make in an Italian workshop was retailing for about $2,850, leading Chief Financial Officer Jean-Jacques Guiony to point out that the brand would “intensify its scrutiny of suppliers and would also invest in bringing more of Dior’s production in-house to prevent similar issues in the future” (Bloomberg).
The bottom line is consumers believe that some luxury labels are selling fast fashion as high-end goods. And as today’s luxury and fashion clients are highly informed, some shoppers are pushing back not only on the high price points, but on status brands that don’t align their values with their products.
Which is why craftsmanship is once again a key differentiator for brands. And it’s becoming more than just storytelling about how a product is made and its materials; brands in tune with their customers are committing resources and making major investments in craftsmanship to preserve cultural heritage and create a narrative around responsible production.
Case in point: Bottega Veneta - another Kering brand - just appointed a newly created role of director of Craft and Heritage, after having launched a school for training craftspeople, the Academia Labor et Ingenium, last fall. And it’s a strategy that is working: Bottega’s focus on craftsmanship, creativity and exclusivity delivered a “record-breaking first half” for 2024.
Going forward, expect luxury brands from Louis Vuitton to Loewe to reinforce their connection with artisans and craftsmanship through communication efforts including ad campaigns, cultural experiences, and client activations that educate and entertain.
Woman crafting a handbag photo courtesy of Raisa Kanareva / Shutterstock
