2022 Price Hikes?

cheapimitation

Well-known member
May 15, 2015
It does appear that Chanel's strategy is bigger but less frequent price hikes so hopefully we won't see another for awhile.

I believe the EDP's price has remained the same price since they replaced the cheaper EDTs, aside from last years European price hike which the North American one now matches.
 

imm0rtelle

Well-known member
Apr 2, 2021
In a short time the new expensive prices will be the old cheap prices and we will all laugh remembering what we talked about.
Wheels have no beginning and no end.
A blast from the past for Hedi's Dior Colognes (Eau Noire, Cologne Blanche, and Bois d'Argent) in 2004:
1642036995205.png

The ultimate rule is if you're sure you 100% want something then buy it sooner, rather than later, to save money.
 

Minotauro

Well-known member
Jul 12, 2021
Two of the oldest "new" bottles I have (ie not counting vintage purchases) are a 50ml bottle of Musc Ravageur that I remember I bought in 2005 for 80 euros. Now its official price is 160 euros.
100% in around 17 years.

And a 125 ml bottle of Bois D'Argent that I bought around 2007 for 98 euros. Now its official price is 220 euros.
124% in around 15 years.

Does anyone know of a product with such price hikes in for example a decade? I accept the fact that fragrances can be considered a luxury product, but do other luxury products suffer from these wild rises?

Luxury, high-end cars for example, do not:

https://cardealermagazine.co.uk/pub...erate-sellers-pushing-prices-downwards/210192

dddddd.jpg


Other variables must be more important, supply / demand, etc ...
 

imm0rtelle

Well-known member
Apr 2, 2021
Other variables must be more important, supply / demand, etc ...

I see infinite upsides for brands to increase their prices:
  • People are willing to buy the same product at higher prices
  • Many people believe that more expensive is better
  • Those who were already wanting to buy it are more motivated to buy it now to avoid another round of increasing
  • Those who are indifferent in the first place aren't going to be more or less interested in buying it, even if they decrease the price, so their opinions don't matter to a brand even if the fragrances increase in price
  • Those who have never heard of the fragrance before, will hear of it due to people bringing it up in the context of it being more expensive than before and might now be more interested in trying the fragrance to see what all the fuss is about
 

PStoller

I’m not old, I’m vintage.
Basenotes Plus
Aug 1, 2019
Luxury products are for people who can afford luxuries. Wealth concentration results in fewer of those people, who in turn have more expendable cash. Hence, luxury products are generally likely to increase in price. Exception are for products where production costs drop significantly, where demand in the target market drops significantly, where the seller decides to expand their market downward, or where competition on price heats up.

Minotauro's link is from a year ago, and refers specifically to luxury used cars in the UK market. Here's a more recent article from Forbes:


Keep in mind that COVID had a significant downward impact on certain sectors last year—cars being one, because almost nobody was going anywhere. That was an uncharacteristic demand drop. This year, new luxury cars are up significantly. I wouldn't expect that trend to change dramatically any time soon.
 

Minotauro

Well-known member
Jul 12, 2021
Generalizing is simple but many times it is not precise, it is vague.
I'm not saying this for you, PStoller, but just because many people repeat the same recurring phrases doesn't make them true.

I do not have the most absolute idea, that's why I ask, but I would like to receive a more precise answer.
It is clear that rich people are getting richer and poor people are getting poorer.
I also understand that fragrances, luxury products, increase prices over the years ... if products such as plastic or paper do, of course luxury products!

In relation to cars, I have included a graphic chart of the price of the Ferrari 488 from 2017 to today (yes, is from 2017 the trend, sorry):

https://www.cargurus.com/Cars/price-trends/Ferrari-m25

12wqw.jpg

Also the price trend of the Porsche 911 over the last years.

https://www.cargurus.com/Cars/price-trends/Porsche-911-d404

3323.jpg

(this is the oldest date you can get to)

Obviously each industry is a different world and trends cannot be extrapolated, but the truth is that not only have prices not risen in most of these years, but they have fallen... and the covid issue is from 2020, not from 2016, 2017 or 2018.

I would like to know if other so-called "luxury" products (watches, skincare, jewelry, etc.) have increased their prices by 120% in a decade? If anyone has any information it would be great to know it.
 

cheapimitation

Well-known member
May 15, 2015
A blast from the past for Hedi's Dior Colognes (Eau Noire, Cologne Blanche, and Bois d'Argent) in 2004:
View attachment 181065

The ultimate rule is if you're sure you 100% want something then buy it sooner, rather than later, to save money.
Yea that's wild, my Eau Noire was purchased when it first launched and I must've thought spending $100 on perfume was soooo much back then ahah. I think designer fragrances like Dior Homme were something like $60.

I feel like niche/designer exclusive fragrances are still a relatively new phenomena and in a way brands are still testing the water to find where the price ceiling is.

What is interesting to me is how the same thing has also happened in fashion where likewise mass availability of luxury designer ready to wear is a very new phenomena. But with fashion, the ever inflating prices have been offset by increasingly deep end of season discounts as retailers have so much product to turn over. I remember paying full retail price for a Dior Homme coat when Hedi was designer and it was about $1000. Now a similar coat might start at $3500 but it's not uncommon to find things marked down by 70% at the end of season, bringing it back down to about $1000, some deal, eh!

The same doesn't really happen with fragrance because it does not have a seasonal shelf life and so far the niche/exclusive lines have done a pretty good job of making sure their products don't end up at discounters, so there's no balancing force to the crazy inflation. Who knows where this will all end!
 

slpfrsly

Basenotes Plus
Basenotes Plus
Apr 1, 2019
A blast from the past for Hedi's Dior Colognes (Eau Noire, Cologne Blanche, and Bois d'Argent) in 2004:
View attachment 181065

The ultimate rule is if you're sure you 100% want something then buy it sooner, rather than later, to save money.
Ouch. Less than $0.5/ml for the 500ml! The end of that sort of world was 2008 in my mind - at the time, 160 Euros wouldn't be much more than £100 as well. Those prices were a 10-15 year blip at most.
In a short time the new expensive prices will be the old cheap prices and we will all laugh remembering what we talked about.
Wheels have no beginning and no end.
I think the only query would be whether 'all' of us will still be 'here'. I think a lot of people use perfume as a means of many things - social online interaction, for one, but also a placation of boredom, retail therapy, sensory novelty - and the increase in prices makes 'keeping up' with the online fragcomm less and less likely. Niche will probably start to move back towards being a true 'niche' market, albeit different to the one that existed 20-ish years ago.

By all accounts, most people are destined to own nothing and still be happy in the next few years. The move towards an economy of renting and services, and away from ownership, means the type of customer willing to 'move' with the market are much older, possible baby boomers who have the capital and expectation to maintain their habits, or the global middle classes who approach perfume differently to 'us': whether they're being used as a expensive gifts rather than aspirational products, or by people who aren't really interested in perfume and who are susceptible to the branding and market position of boutique brands.

I expect the vintage and used/second hand market will maintain a growing fascination for most basenotes users for a host of reasons: not least because modern releases are inferior to those of the past (whether through reformulation or a decline in ability), but also because there is simply more and more good stuff to be found already 'out there'.
 

Brooks Otterlake

Basenotes Plus
Basenotes Plus
Feb 12, 2019
I would like to know if other so-called "luxury" products (watches, skincare, jewelry, etc.) have increased their prices by 120% in a decade? If anyone has any information it would be great to know it.
I'm an amateur watch guru. I'll do my best to provide context.

What we see in that space is a lot of price-climbing in the true luxury tiers ($4000+).

But there's also been a growing amount of market-share and competition in the entry-level luxury watch space ($1000-$4000) and a lot of upheaval in the "affordable" space (sub-$1000).

The sub-$1000 space has become incredibly competitive, with lots of independent, high-quality, high-value "microbrands" putting a lot of strain on the big brands to show value.

I don't think this is all super-analogous to fragrance (like automobiles, the costs are not equivalent). But what we're seeing is:

1) An explosion of desireable options for every target market
2) With a few exceptions, the established brands are increasingly abandoning the "affordable" space (sub-$600), where independent, single-owner brands are excelling
3) The established brands are locked in a heated fight for the "luxury" consumer, from entry-level luxury up through extraordinary/absurd luxury
4) High-end luxury watch prices are spiraling ever-higher (and have been for a long time) to establish exclusivity
 

Minotauro

Well-known member
Jul 12, 2021
Ouch. Less than $0.5/ml for the 500ml! The end of that sort of world was 2008 in my mind - at the time, 160 Euros wouldn't be much more than £100 as well. Those prices were a 10-15 year blip at most.

I think the only query would be whether 'all' of us will still be 'here'. I think a lot of people use perfume as a means of many things - social online interaction, for one, but also a placation of boredom, retail therapy, sensory novelty - and the increase in prices makes 'keeping up' with the online fragcomm less and less likely. Niche will probably start to move back towards being a true 'niche' market, albeit different to the one that existed 20-ish years ago.

By all accounts, most people are destined to own nothing and still be happy in the next few years. The move towards an economy of renting and services, and away from ownership, means the type of customer willing to 'move' with the market are much older, possible baby boomers who have the capital and expectation to maintain their habits, or the global middle classes who approach perfume differently to 'us': whether they're being used as a expensive gifts rather than aspirational products, or by people who aren't really interested in perfume and who are susceptible to the branding and market position of boutique brands.

I expect the vintage and used/second hand market will maintain a growing fascination for most basenotes users for a host of reasons: not least because modern releases are inferior to those of the past (whether through reformulation or a decline in ability), but also because there is simply more and more good stuff to be found already 'out there'.
I feel identified with your words; of course vintage fragrances is something that will mantain a growing fascination for most of us... so many good things are discovered and re-discovered!
Anyway, it's a world apart, in fact here in the Basenotes forums there is a section exclusively for vintage.

I collect vintage mechanical and automatic wristwatches, and the feeling I have with them is very similar to that of perfumes from 30-40 years ago: they were made in a different way, their construction, conception was different, they have an imprint that is now a little more hard to find.
I think they were created to last, at least longer than they are now; now everything is usually more ephemeral and the new perfumes overlap each other.

However, I am a little pessimistic by nature... the years go by and fragrances are something even more delicate and volatile than a watch... and I think about the future, some 30 years ahead and imagine a vintage forum talking about fragrances like Chanel Bleu, Hermes H24, Dior Sauvage for example, you know what I mean? and that depresses me...
I am not saying they are bad fragrances, but I already feel that it is not the same: am I exaggerating? probably.

Anyway, I always think of something like that, it's one of my recurring nightmares...

I'm an amateur watch guru. I'll do my best to provide context.

What we see in that space is a lot of price-climbing in the true luxury tiers ($4000+).

But there's also been a growing amount of market-share and competition in the entry-level luxury watch space ($1000-$4000) and a lot of upheaval in the "affordable" space (sub-$1000).

The sub-$1000 space has become incredibly competitive, with lots of independent, high-quality, high-value "microbrands" putting a lot of strain on the big brands to show value.

I don't think this is all super-analogous to fragrance (like automobiles, the costs are not equivalent). But what we're seeing is:

1) An explosion of desireable options for every target market
2) With a few exceptions, the established brands are increasingly abandoning the "affordable" space (sub-$600), where independent, single-owner brands are excelling
3) The established brands are locked in a heated fight for the "luxury" consumer, from entry-level luxury up through extraordinary/absurd luxury
4) High-end luxury watch prices are spiraling ever-higher (and have been for a long time) to establish exclusivity

What a coincidence that you mention watches, dear Brooks... I am a collector, my knowledge is basic... I do not collect anything spectacular, I have many Russian mechanical watches for example because they are resistant, affordable and have very quirky designs.
I think the most valuable watch I own is an Omega Speedmaster, a Nomos Tetra and an old gold-plated wind-up watch with a Peseux movement.

I understand what you are saying, with the rise of this type of independent micro-brands that in terms of quality/price are very attractive for a "middle-level" customer, the big luxury brands are forcing themselves to differentiate themselves more and are increasingly positioned in a highest price level.

I usually look at the web stores of Hamilton, Stowa, Omega, etc and every year the price hike is evident ... but most of the time I look at them as a mere peeper rather than out of real interest in wanting to buy something, so I do not have in mind what kind of price rises they handle per year/s but yes, I do not think it is low.
Thanks for your clear explanation.

(Sorry for my somewhat off-topic post).
 

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