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Burberry's oversight: Misreading the market with a £2,500 handbag.

Prior to the appointments of Jonathan Akeroyd and Daniel Lee, Burberry's handbags typically commanded a price of approximately £990. However, recent reports from Luxurynsight indicate that the current assortment boasts an average price of £1,700, with the premium shearling 'B frame' clutch reaching a pinnacle at £3,590.

Burberry contends that its pricing strategy aligns with an associated elevation in product quality, asserting that its prices remain competitive within the context of the luxury market. Nevertheless, the pronounced escalations implemented by industry titans within the handbag domain have afforded Burberry latitude to adjust its pricing accordingly.

In the words of Jonathan Siboni, CEO of Luxurynsight, 'Burberry has gone in the right direction but they have moved a bit too quick. People like what Daniel Lee is doing but that doesn’t mean they are willing to pay twice the price.'

For instance, Chanel's esteemed 2.55 handbag has surged from $5,800 in 2020 to a staggering $10,200 at present. Similarly, Prada's galleria now commands $4,300, up from $2,750 in 2021. Meanwhile, Louis Vuitton's speedy 30 handbag commands a price tag of $1,550, marking a notable increase from $1,160 in 2020.

For further insights, explore the full article at The Times, authored by Sam Chambers.

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