Luxury houses space out price rises: weighing new against pre-owned
Luxury houses space out price rises: weighing new against pre-owned
Several major luxury houses have moved from two price increases a year to one for their signature handbags, and the shift changes how new and pre-owned prices sit alongside each other as the festive season approaches.
What the study tracked
According to a study reported by FashionUnited, luxury houses are now leaving longer gaps between their price increases. For the past three years, higher prices were the main driver of growth across the sector. The new data suggests that approach is changing.
The research comes from Retviews, the market analysis tool owned by Lectra, which follows prices across brands and countries. It found that several houses have moved from two price increases a year to one for their signature handbags. Brands are also reducing the price differences between markets, so the same item costs a more similar amount in different countries. They are also putting more effort into their lower-priced ranges.
The examples in the report are mainly about handbags. The report does not say that watch or jewellery houses have made the same changes. Anyone planning to buy a Cartier bracelet, a Tiffany ring or a Rolex should not assume the same pattern applies to those pieces.
How boutique prices reach the pre-owned market
The study is still relevant to jewellery and watch buyers because it shows how carefully the big houses manage their list prices. The list price is the official price a brand charges in its own boutiques. Many shoppers use it as their starting point.
When a house raises the list price of a current piece, the gap between a new example and a pre-owned one of the same model changes. Dealers and buyers look at the current boutique price as a reference. A higher list price can make a well-kept pre-owned example look more reasonable by comparison, and it can support what sellers ask.
That reference point is only part of the picture. Pre-owned asking prices are set largely by three things:
- Condition: scratches, dents, worn engraving, past polishing and the state of any stones.
- Completeness: whether the piece comes as a "full set", meaning the original box, certificate, receipt and any service papers.
- Demand for that model: a particular size, metal or design can be more sought after than others from the same house.
Because of this, two examples of the same design can carry quite different asking prices. Pieces the brand no longer makes have no current list price at all. Buyers of these are judging the piece on its own merits and on how many good examples are available.
What this means for luxury watch and jewellery buyers
If you are deciding between new and pre-owned for a Christmas or New Year purchase, the timing of a brand's price rises is one consideration among several. The study describes what houses have been doing with handbag pricing. It does not say what any price will do next, and no one can promise that.
A side-by-side comparison of the exact piece you want will tell you more. That works whether you are looking at branded jewellery or a watch.
Three checks before comparing new with pre-owned
- Confirm the current boutique price for the exact same model, size, metal and stone setting, so you are comparing like with like.
- Inspect the condition closely and ask about any resizing, polishing, stone replacement or servicing, because each of these affects what the piece is worth to you.
- Check what comes with it, including the box, certificate, receipt and service history, and make sure the documents match the piece, such as matching serial numbers or hallmarks (the official stamps showing the metal's purity).
Once you have done these checks, you can judge both options on their own merits. A new piece comes with the full boutique experience and warranty. A pre-owned one should be judged on its condition, its paperwork and how sought after that particular design is.
Where this comes from
The figures come from a study by a market analysis tool that tracks prices across brands and countries, as reported by FashionUnited. The research covers handbag pricing across several luxury houses and examines the frequency of list-price increases and the narrowing of price differences between markets. It does not cover watches or jewellery, and it describes past pricing behaviour rather than forecasting future changes.
