Luxury Brands and the Importance of Exclusivity

In an era dominated by social media and instantaneous global connectivity, luxury fashion brands such as Hermès, Chanel, Louis Vuitton, and Gucci thrive on a compelling paradox: exclusivity. These brands have historically cultivated their prestige through scarcity, unparalleled craftsmanship, and an aura of unattainability, catering to a privileged elite. Yet, the rise of the media age—marked by platforms like Instagram, TikTok, and YouTube—has introduced a striking irony. The very tools that amplify a brand’s visibility threaten to erode the exclusivity that defines its identity. This tension reshapes brand strategies, consumer behaviour, and the industry’s economic landscape, creating a delicate balancing act between tradition and modernity. In this months Eclectics conversation, we explore this contradiction and its profound impact on the luxury fashion sector.

Exclusivity has been the bedrock of luxury branding since its inception. In the mid-20th century, Hermès gained fame with the introduction of the Kelly bag in 1956, a handcrafted piece limited to a few hundred annually, reserved for the elite with connections or significant wealth, inspired by the Golden Age icon and literal princess, Grace Kelly. What could be more appealing to a high earning lady than a bag crafted for actual royalty? Similarly, Chanel’s couture collections and Louis Vuitton’s monogrammed trunks were symbols of status, walking advertisements of wealth, accessible only to those who could navigate exclusive boutiques or waitlists. A 2022 Bain & Company report highlights that luxury goods, despite comprising just 1% of the global fashion market, account for 15% of its $1.5 trillion revenue, underscoring the premium placed on exclusivity. This scarcity is reinforced by craftsmanship—Hermès employs over 1,000 artisans to produce its bags, with each Birkin requiring up to 18 hours of work, according to a 2021 Luxury Institute estimate. The result is a product that feels rare and artisanal, driving demand among the world’s wealthiest 1%, who own 44% of luxury goods, per a 2023 Credit Suisse Global Wealth Report.

However, the media age has disrupted this model. Social media platforms have democratized fashion, with influencers and celebrities showcasing luxury items to billions of users. A 2023 Statista study found that 68% of luxury brand exposure now occurs via digital channels, a sharp rise from 45% in 2018. This visibility often includes fast-fashion knockoffs, diluting the elite allure. The irony is palpable: to remain relevant, brands must engage with these platforms, yet this exposure undermines their exclusivity. The very thing that keeps the brands survival is in this new technological age, killing their sales. For instance, Hermès produces only about 200,000 Birkin bags annually, yet images of the bag appear on over 5 million Instagram posts, per a 2022 Socialbakers analysis, making its rarity feel less exclusive. Similarly, Gucci’s limited-edition collections, hyped through TikTok campaigns, sell out in hours but are instantly replicated by affordable alternatives, eroding the brand’s prestige.

This paradox has forced brands to innovate by introducing things such as limited-edition drops, collaborations with artists, and personalized services, which have become the most logical strategies to reclaim exclusivity. Louis Vuitton’s collaborations with artists like Yayoi Kusama, producing only 1,000 pieces per design, cater to collectors while generating media buzz—yet 70% of luxury consumers discover these items online, per a 2020 McKinsey report, blurring the lines of access. Chanel restricts its iconic flap bags to 2-3 per client annually in some regions, a policy backed by a 2021 Business of Fashion article, to maintain scarcity. Hermès, meanwhile, takes exclusivity to another level with its Birkin bag waiting list, which can span 5 to 10 years. Remarkably, even after this lengthy wait, clients don’t get to choose their specific bag—Hermès assigns a style and colour based on availability, reinforcing the brand’s control over exclusivity. Despite this, the receiver of the bag will almost certainly be happy with their delivery, reinforcing that these items are more often than not about being part of the ‘I Made It’ club, than looks and style. These bags are also seen as investment pieces, with resale values often exceeding original prices by 50-100%, according to a 2023 Bag hunter report, further enhancing their allure. It is even suggested that Hermes bags are possibly the best type of investment to have, over watches, gold or silver. Similar to that of a new-wave art piece, which could just be a simple splash of paint on a canvas selling upwards of a few million, the Birkin bag is an item to offload a fair chunk of income.

The economic stakes are high in this regard - exclusivity drives luxury’s profitability, but advertisement on social media is arguably more influential. Bain & Company notes that personal luxury goods grew 18% in 2022, reaching $362 billion, with 80% of growth tied to exclusive products. Yet, the media age pressures brands to expand production. Gucci, for example, increased output by 10% in 2023 to meet demand, risking dilution, per a 2024 WWD report. This tension extends to sustainability: fast fashion’s 100 billion garments produced yearly contrast with luxury’s heritage, yet the push for visibility tempts even high-end brands to compromise artisanal roots. A 2023 UN Environment Programme study found that luxury’s carbon footprint rose 5% over five years, partly due to scaling production.

Resale markets further complicate exclusivity (sorry guys!) Vintage pieces, like a 1980s Gucci loafer or a 1950s Hermès scarf, gain value due to their rarity—only 5% of luxury goods from these eras remain in circulation, per a 2023 Fashion United analysis. This scarcity fuels a $36 billion second-hand luxury market, projected to double by 2030, according to a 2022 ThredUp report. However, platforms like Vestiaire Collective, and even us here at Ascensio, expose these items to millions, challenging their elite status. Collectors and stylists drive demand, yet the digital spotlight makes ownership a public spectacle.

The irony further deepens with consumer behaviour. A 2021 BCG study revealed that 85% of luxury buyers value exclusivity, but 62% admit to purchasing based on social media trends, creating a cycle where rarity is marketed yet widely consumed, defeating the point entirely. Brands like Hermès counter this with invite-only events and bespoke services, while Louis Vuitton restricts online sales to preserve in-store mystique. Yet, the media’s reach—over 4.7 billion social media users globally, per 2023 DataReportal—ensures that even the most exclusive items are seen by all.

A recent development at Chanel only exemplifies this further. In early 2025, amid economic pressures from global inflation and a reported 5% drop in luxury spending in Europe, Chanel announced a historic decision to lower prices on select items, including classic flap bags, by up to 10%, as reported by Reuters on May 10, 2025. This marks the first time in the brand’s history—spanning nearly a century—that it has reduced prices, a move previously unthinkable given its commitment to exclusivity. Historically, Chanel has relied on price increases to enhance its prestige, with bag prices rising 70% between 2019 and 2023, per a 2024 Vogue Business analysis. This unprecedented step aims to boost accessibility during economic uncertainty, potentially attracting a broader clientele. However, it risks undermining Chanel’s exclusive appeal. A 2023 McKinsey survey found that 78% of luxury consumers associate high prices with brand prestige, suggesting that lower prices could diminish Chanel’s status symbol status. Resale values, which often exceed retail by 30-50% for Chanel bags, may also decline, affecting their appeal as investment pieces. This shift could weaken the brand’s aura of unattainability, a cornerstone of its identity, especially as media amplifies the news to millions, inviting scrutiny and imitation.

Ultimately, the fashion industry’s irony lies in balancing exclusivity with accessibility. Luxury brands must leverage media to grow—Gucci’s 2023 digital campaigns boosted sales by 15%, per a company statement—while preserving their elite status. True luxury lies in the craftsmanship and scarcity behind each piece, whether a Hermès Birkin with its years-long waitlist and unpredictable allocation, or a Chanel couture gown now facing a pricing dilemma. As the industry navigates this digital age, the challenge is to maintain the allure of the unattainable amidst a world that demands visibility. The Chanel price reduction, a bold departure from tradition, highlights how economic pressures can force even the most exclusive brands to adapt, potentially reshaping consumer perceptions and the competitive landscape. This paradox will continue to evolve, blending heritage with the realities of a connected, economically volatile era. We all want to be part of something, part of a club. No matter how much we can be humble and deny it, the fact remains that being invited into exclusive circles feels really, really good. Human nature can be predictable. At Ascensio, we want to spread the love of craftsmanship and favoured designers to anyone who wishes to partake - but maybe even this blog is an exclusive club you feel aligned with. The rabbit hole continues.

As always, please leave comments and email us with what you’d like us to cover next month!

AV xx