November 2022 has seen price increases across the board in the luxury world. Bottega Veneta also had a price increase to keep up with its competitors. In this article we’re going to look at a few reasons why the brand had an increase in the first place. We’re also going to look at how much their top handbags have increased by.
Bottega Veneta is a luxury Italian brand owned by Kering. The name means “Venetian Shop” a node to its beginning as a little boutique in Venice, Italy.
Bottega is considered an great quality brand, known by their intricate leather designs. They are the most known for their “intrecciato weave” which is a distinctive leather weaving design. All of their handbags are handcrafted in Italy by knowledgeable artisans.
The brand had a surge in popularity in 2018 when Daniel Lee, the creative director at BV launched the Pouch Bag. The clutch became the fastest selling bag in Bottega’s history and launched the brand into mainstream luxury. Suddenly there were lots of celebrities and influencers wearing Bottega bags which propelled the brand into new heights.
Why did Bottega Veneta increased their prices in November 2022?
The year 2022 has seen a tremendous recovery of the luxury market after the loss caused by Covid. Despite a war breaking out in Europe, the taste of luxury goods has not subsided – on the contrary. Bain & Company has put out a report saying that the luxury market grew by an outstanding 17-19% in the first half of 2022. Profits are at record highs for these companies, so there’s is always the question “why do they need to increase the prices even more?”
The 6 reasons why Bottega has increased their prices again in November:
- to keep up with its competitors
Many if not most luxury brands have had price increases in 2022. Just in November YSL and Chanel increased their prices (see our articles about both increases). Gucci, Hermes, Cartier and Tiffany have also increased their prices in 2022. Bottega also has to increase their prices to be seen in the same category as the other designer brands.
- to increase desirability
As weird as it sounds, Bottega Veneta and other luxury brands increase their prices to increase desirability. They actually want less people that can afford their pieces because it increases the feeling of exclusivity. Think about it, most people can afford a Coach bag (albeit with some savings) but very few can afford a Chanel, Hermes and now a Bottega bag. This makes a certain category of people more willing to buy a brand.
- increased costs of goods
Due to the inflation and the conflict happening in Europe, there has been a price increase for lots of goods and sometimes for labor as well. This means that it is now more expensive for Bottega Veneta to produce their goods, hence the price increase.
- the falling of the Euro
Hermes announced that prices will rise by 5-10% due to currency fluctuation and rising costs of goods. Most European brands are affected by the falling Euro, so it’s not a surprise if Bottega increased their prices due to currency fluctuation.
- increase short-term demand
Price increases can also be used as a way to increase demand in the short term. What usually happens is that brand lovers will rush to the store to “beat the price increase”. It creates the feeling of urgency, one cannot leave it for next week to buy that coveted Bottega Jodie bag – it has to be “today” before the price increase.
- increase profitability
At the end of the day is all about profits. If Bottega or the parent brand Kering can increase their profits, they will. As long as demand is still there, it’s an obvious solution for them: increase prices to increase the profit margins.
Bottega Veneta Price Increase Table
|Bag Name||Previous Price||Price 2022||Increase in %||Increase in $|
|Bottega Veneta Mini Loop||$1,250||$1,950||56%||$700|
|Bottega Small Bucket||$1,200||$1,800||50%||$600|
|Bottega Nappa Smooth Pouch||$2,400||$2,500||4%||$100|
|Bottega Pouch Smooth 20||$1,250||$1,400||12%||$150|
|Bottega Mini Jodie||$2,500||$2,650||6%||$150|
|Bottega Intrecciato Pouch||$2,950||$3,100||5%||$150|
|Bottega Intrecciato Pouch 20||$1,550||$1,580||2%||$30|
As you can see, some bags have increased by 50%, that is quite extreme even in the world of designer goods. The Mini Loop has increased by 56%, whereas the Pouch and Mini Jodie had smaller price increases of maximum 12%.
The question is now, how will this price increase fare for Bottega Veneta? Many loyal customers have already rushed to buy a bag before the price increase. But it’s debatable if customers will still buy the brand regardless of all the price increases. Some people see designer bags as investments, not only to their wardrobes but actual financial investments. Bottega’s resale prices are not comparable to the ones of Chanel, Hermes and even Louis Vuitton, so it’s interesting to see how the market responds.
Alternatively, it’s a good news for you that likes to shop second hand -as you can still grab a bargain Bottega Veneta bag. Here are some pre-loved options for you if you didn’t beat the Bottega Veneta price increase.
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