Luxury truly is about price and pricing power. While brands that try to approach luxury status are battling to stay afloat during this pandemic, margins slashed by discounts, true luxury brands have the power to rise prices. This happens every year. We measure this price increase (here also a Vogue Business article) through our Raw Price Stream dataset both in direct-to-consumer channels and wholesale, both for evergreens and new collections, in all geographies.
Most of fashion brands tried to repair pandemic damage by supporting volumes at lower margins. There is in fact an issue of inventory when brands are highly seasonal and need to continuously push new products to the market, while previous seasons must move out. True luxury brands are more stable, product shelf life is longer, so it is a very interesting move to increase prices, and you counter balance lower volumes with higher margins.