Wholesale Blog

The Luxury Brand Hierarchy

Knowing which brands will yield your highest margins are key to your business's growth.

Deanna Thompson

There is a hierarchy to the luxury brands that consist of Ultra Luxury, to Contemporary, and while it may be easy to understand, as a resale business owner, knowing which brands will yield your highest margins are key to your growth.

As expected, at the top of the luxury pyramid are Hermès and Chanel and while both of those brands do command a much higher resale price (always based on style and condition) there are several “mid-tier” brands that your customers are searching for that also can yield a high margin for your store.

When looking at the luxury pyramid, one thing to take into account is that manufacturing tends to happen at a higher pace the farther down you go with brands like Coach and Michael Kors producing several more styles than brands like Chanel or Louis Vuitton. This creates a glut in the market and drives resale pricing down so your margins for these brands are going to be much smaller.

As your business continues to grow, sourcing is a huge factor in making sure you have the brands and styles that will yield a higher margin but also get your customers excited. LePrix is the perfect platform to help you bring in the brands and styles at the price that works for your business.

The Luxury Hierarchy:

Ultra luxury handbag brands have a rich history and heritage that spans several decades or even centuries and are positioned at the pinnacle of the luxury market, offering the most exclusive and prestigious products. They often have a strong brand identity and are associated with prestige, sophistication, and exclusivity. Their products are coveted status symbols, conveying a sense of wealth and discerning taste. The brands that most fit this definition are:

Chanel & Hermès

Luxury handbag brands are typically characterized by several key elements that distinguish it from mainstream brands. While the exact criteria may vary, the following factors commonly define a luxury handbag brand like quality materials and craftsmanship, brand heritage and reputation along with prestige and status. The brands that most fit this definition are:

Bottega Veneta, Delvaux, Louis Vuitton & Moynat

There are several luxury handbag brands that are renowned for their exceptional quality, craftsmanship, and timeless designs and these all are highly regarded for their commitment to excellence, premium materials, and iconic designs, making them sought-after symbols of luxury and style. The brands that most fit this definition are:

Balenciaga, Celine, Dior, Faure le Page, Fendi, Givenchy, Goyard, Loewe, Miu Miu, Prada, Saint Laurent, Tod’s & Valentino

Contemporary handbag brands typically dedicate their resources, expertise, and creativity to creating a wide range of handbag styles, designs, and sizes and often excel in developing their signature styles and iconic designs that become synonymous with their brand identity. The brands that most fit this definition are:

Burberry, Chloé, Coach, Dooney & Bourke, Kate Spade, Longchamp, Mansur Gavriel, Marc Jacobs, MCM, Michael Kors & Tory Burch

It’s important to note that each individual brand may emphasize certain elements more than others and each has its own unique identity, design philosophy, and target audience, contributing to the diverse landscape of luxury handbag brands in the market.

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LePrix is not affiliated with or associated with any brand owners. All items are pre-owned, secondhand.