Answer by Syama Meagher:
Luxury brands have higher markups than regular brands. In some cases retailers don’t get to the ideal 60% markup, and are looking at margins around 25% knowing that the product will sell due to scarcity and high demand + brand name.
I’d guess that Lanvin would be able to seek out $400 from a flat that sells for $550 from the retailer. Now…on the back end, Lanvin will mark up from their production costs + since they have scaled their production may be able to produce for about $125 (since at $550 we are looking at basics, not python etc.).
At the end of the day Lanvin probably gets $425 if you buy from their site, and $275 if you buy from Barneys or another retailer.
Answer by Syama Meagher:
Luxury brands have higher markups than regular brands. In some cases retailers don’t get to the ideal 60% markup, and are looking at margins around 25% knowing that the product will sell due to scarcity and high demand + brand name.
I’d guess that Lanvin would be able to seek out $400 from a flat that sells for $550 from the retailer. Now…on the back end, Lanvin will mark up from their production costs + since they have scaled their production may be able to produce for about $125 (since at $550 we are looking at basics, not python etc.).
At the end of the day Lanvin probably gets $425 if you buy from their site, and $275 if you buy from Barneys or another retailer.
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