Analysis of the core reasons for the large price gap of bags
The huge difference in bag prices stems from the combined effects of multiple dimensions, from brand value to production costs, from market strategy to consumer psychology, each link has a profound impact on the final pricing. The following is an analysis from seven key points:

1. Brand premium: the added value of history and identity

Luxury brand effect: Top brands such as Hermès and Chanel use centuries of history, scarcity (such as limited production, allocation system) and status symbols to push prices up to hundreds of thousands or even millions of yuan. For example, Hermès Birkin bags need to be purchased in allocation, and the actual price is far higher than the marked price.
Brand positioning differences: The same bag has different positioning in different markets. For example, Coach is positioned as affordable luxury in the United States, but in China, due to import taxes and brand strategies, the price difference can be as much as 40%.
2. Material cost: from synthetic leather to rare leather

High-end materials: Rare materials such as crocodile skin and ostrich skin are extremely expensive and require special processing. For example, Hermès' crocodile leather bags need to go through dozens of processes, and the material cost alone may exceed the price of ordinary bags.
Common materials: Common materials such as synthetic leather and canvas are low-cost, machine-made and efficient, and affordable. For example, a ZARA canvas bag may cost only one percent of a luxury product.
3. Process complexity: the game between manual work and machines

Handmade: From cutting to sewing, everything is done by hand, which takes days or even months. For example, the Brillant bag from Delvaux takes 7 hours to sew by hand and costs more than 10 times that of a machine-made bag.
Machine production: Assembly line operation is highly efficient and low cost. For example, a machine-sewn bag from Michael Kors may cost only one-tenth of a handmade bag.
4. Design cost: the leap from practicality to art

Exclusive design: Co-branding with artists or original design requires high copyright fees and R&D costs. For example, the price of the co-branded model of LV and Yayoi Kusama is more than 50% higher than the ordinary model.
Ordinary design: imitates classic styles or is mass-produced, with low design costs. For example, a large number of "same style" bags on Taobao reduce costs by simplifying the design.
5. Market supply and demand: scarcity determines price

Limited edition hype: For example, the LV small Mahjong bag has been out of stock on the official website for a long time, and the second-hand price has doubled. When supply exceeds demand, prices are driven by market sentiment.
Regional differences: Due to high demand in fashion capitals such as Paris and New York, the price of the same bag may be 20%-30% higher than in niche regions.
6. Added value and services: the premium of the experience economy

Luxury goods services: exclusive after-sales service, customized engraving, gift box packaging, etc. to enhance the consumer experience. For example, Chanel provides free lifetime maintenance, and the cost is passed on to the selling price.
Affordable brand strategy: attract consumers through small profits but quick turnover and rapid style updates, with low service costs.
7. Taxation and logistics: hidden cost drivers

Import tariffs: China imposes high tariffs on luxury goods, resulting in significant price differences between China and abroad. For example, a Coach bag may cost 40% more in China than in the United States.
Logistics costs: Long-distance transportation (such as from Europe to Asia) involves sea transportation, air transportation, warehousing and other costs, which are ultimately borne by consumers.