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Luxury price increases - aftermath of the Covid-19 pandemic

14.11.2020

shopping covid pandemic

The COVID-19 pandemic precipitated the closures of retail stores worldwide. A lot of businesses began to worry about not being able to sell their merchandise. Many people were laid off or their salaries decreased exponentially. This domino effect particularly affected luxury retailers as a result of their inability to provide their signature "luxury experience". It may therefore be strange to hear that the prices of the luxury market have been steadily rising and that people have been interested in piggybacking off of these price increases through investment.

Why are luxury brands increasing prices?

At the beginning of October 2020, Chanel increased its prices for the second time this year. The increase ranged from 4.5% to 7.8% depending on the item. Louis Vuitton, Hermes, and Gucci joined in on the Q3 price increases as well. But why are these brands actively increasing prices, especially considering the COVID-19 pandemic is not yet over?

It is important to note that luxury brands control their demand. People that have wealth always want to have assets that seldom lower in value. Once you invest in luxury products from well-known brands, the value is likely to go up. That’s especially true if you consider Hermes or the other brands mentioned above that offer time-limited collections. Those almost always increase in value due to their scarcity. Additionally, raising prices is a manifestation of brand power, something that only select businesses like these are able to pull off.

What is Konvi and how can it help you invest in luxury?

When you invest in luxury, you acquire assets whose value is expected to be a lot higher in the long run. The challenge here comes in finding what products you should invest in. That’s where Konvi comes into play. The Konvi app is a platform that scours the market in order to find luxury items that are great investments, right now.

Through Konvi, you have the opportunity to, along with many other co-investors, put down capital in order to crowd-own investment grade luxury items. After the funding target is acquired, you will get a notification from Konvi that the investment period begins. We then purchase the item, and keep it secure for a pre-agreed upon term, after which it is sold at a profit for all investors.

Conclusion

When talking about investment grade luxury items, Konvi is one of the best options in Europe. We offer a unique opportunity to gain profits without having to purchase these very expensive luxury items. With Konvi, you can invest in luxury with the peace of mind that experts with great track records have carefully chosen items from reputable brands, just for you to invest in. Our partners' track record shows average returns of 20% per annum, higher than through many other traditional investment opportunities. Given the great track records Konvi is backed by, and its 0% guaranteed minimum returns, you can be sure to make great profits by using the Konvi app at a minimized risk.

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