Have you ever wondered why famous designer brands are so overpriced? Why does a Balenciaga hoodie with a small logo retail at about $1000, or a Birkin bag from Hermes for over $10,000? These prices are ridiculously high– so let’s discuss the factors that contribute to this. 

In an interview for Glamour Magazine, Alber Elbaz – an Israeli fashion designer – linked these prices to the laborious design process, noting that when he “took all the bones out, and [stitched], and to get there, you know, it took me forever. It took me six or seven dresses to make one”. In addition, Alber also took into consideration how in many countries, designers have to pay very high taxes. For example, he mentioned that he pays a 65% tax in France. 

More factors that contribute to these ridiculous prices are warehousing and distribution. Although lower priced brands also pay for warehousing and distribution,  designer brands require more care and must consider the cost of marketing. They spend a considerable amount of money on fashion shows and celebrities needed to promote their products. For example, according to BBC, Kylie Jenner is paid around $1.2 million for a single post on Instagram. 

Lastly, designer brands rarely mass-produce their products. Companies pay for the high-quality craftsmanship that comes with their products, thus causing prices to be raised. While I don’t necessarily believe that a $900 Gucci t-shirt is worth it, it could be argued that the prices are understandable considering all these factors.