In any luxury brand pricing philosophy or profit engine, the three most important aspects are ;
- The Core or the product
- The Extended or the distribution system, and
- The Enlarged or their social system.
Each brand adopts a different ratio of the above three which is line with their brands philosophy, DNA and vision on exclusivity. The cost structure linked to the above three for each brand is unique and cannot be compared to another. Hermes for example focuses on very high ratio of product raw material ; craftsmanship, process and all materials used. each item being hand made by a singl…