Fashion Purses

Fashion purses are the handbags that all the top designers release. Interestingly, even though many women are more than happy to have a designer bag around their shoulder they don't realize some of the more interesting facets of how the fashion industry works from a financial standpoint. The high end desirable purses are the money making arm a truly complex business model that uses fancy and often times ridiculous fashion shows as its loss leader. Loss leaders are generally defined as a part of a business that loses money BUT if when done correctly the loss leader isn't just a financial failure, it actually drives the profit high enough to offset the loss by bringing customers in the proverbial door that spend enough money on other highly marked up items to more than offset the negative numbers the loss leader posts. Milk and charcoal have long been described as loss leaders for grocery stores. It's expensive to stock, ship, and handle these heavy products that are sold at very cheap prices. Grocery stores know though that customers won't come to their store at all if they don't offer these products that are considered stables. To avoid losing all of the profitable business that consumers bring in to the store the loss leader product has to be offered. The way this works with high end fashion is a bit different but the idea is still the same.

The fashion industry has a rather unique loss leader in the form of extravagant fashion shows in exotic locations like Milan and Paris. The fashion shows cost a fortune to put on and only feature dresses and accessories that are completely impractical for almost all consumers. This world of high fashion with it's anorexic models and snobby professionals is nothing more than a giant loss leader that creates a tremendous amount of buzz as it generates a enviable sophisticated appearance that is nothing more than a front for pushing fashion purses and similarly overpriced items like thousand dollar pairs of shoes and countless other overpriced accessories.

If you've always been confused about the workings of the fashion industry with its wild and strange fashion shows then your not alone. The practicality of the entire endeavor centered around tall rail thin women snobbishly walking down the cat walk in clothes that no normal person would ever wear if indeed very confusing. The simple truth of the matter is that the entire game with regards to fashion is to convince customers (mostly women) that if a company throws what equates to high class parties then it somehow makes sense to spend thousands of dollars on the top fashion purses on the market. Everything in this industry comes down to perceived value and the companies like Fendi, Dooney, and Marc Jacobs amongst others have done a world class job of creating an image of luxury that sells. The every day woman will never find herself hopping around Europe to high class soirees but she can feel like she has been by slipping into an overpriced pair of shoes that have the label of a company that promotes that sort of lifestyle. Selling high end products can be extremely lucrative but it's a fine line when it comes to marketing and sustaining a certain image. The lesson to take from this post is that you should think beyond the initial layer of hype and image when trying to understand why certain high end fashion purses are so ridiculously overpriced.