Famous brands love to talk about their history and traditions, the finest materials and handicrafts, thanks to which they can offer their customers the most luxurious dresses, bags, shoes and other accessories. But in fact, high-quality materials and work of professionals do not play the most important role in the pricing of goods from famous fashion houses.

mystylex.techinfus.com/en/ already talked about the fees of supermodels and the total cost of advertising campaigns. Supermodels and actresses are delighted to receive millions of dollars for advertising, and we are delighted to know that our favorite actress or supermodel has made a lot of money in a year. But in the end, buyers of fashion products, cosmetics and perfumes pay for her sweet life.

In addition to spending on celebrities, fashion brands spend huge sums of money to maintain their boutiques, which are located on the most expensive streets. The fashionunited site introduces us to interesting information regarding the costs of Chanel, Moncler, Louis Vuitton, Levi's and other brands for store maintenance.



1. Fifth Avenue, Manhattan - Tiffany Boutique
Tiffany's iconic flagship store is located on Fifth Avenue. The boutique area is 4227 square meters. If you count the meters and the rental rate, it turns out that the jewelry brand pays $ 136 million in store rent annually!

One of the most popular Tiffany collections at the moment is the T collection, which includes diamond rings that retail for an average price of $ 2,200. It turns out that Tiffany needs to sell about 170 of these rings every day to cover the rental costs. This, of course, is a very simplistic calculation, because in Tiffany stores not only rings are sold, but other products as well.

2. Causeway Bay, Hong Kong - Adidas store
Causeway Bay is home to many luxury boutiques, but one of the leaders is Adidas, which pays $ 8.6 million in store rent each year. To cover these costs, Adidas must sell at least 296 pairs of its famous Gazelle sneakers every day, which retail for about $ 80.



3. Tsim Sha Tsui, Hong Kong - Louis Vuitton boutique
The Fashion House Louis Vuitton has a boutique in Hong Kong with an area of ​​1,749 sq. M. Rent costs - 51 million dollars per year for the entire area of ​​the boutique. This means that Louis Vuitton has to sell approximately 135 Speedy 30 bags every day just to cover the rental costs!

4. Times Square, NY - Levi's store
Denim brand Levi's owns a 604 sq m store in Times Square. On average, it pays $ 2,000 per square foot, which means Levi's is parting with $ 13 million annually. The brand's best-selling jeans are Levi's 501 jeans, which retail for $ 59.90. This means that 595 pairs of trousers of this model need to be sold every day.

5. Champs Elysees, Paris - the flagship of Louis Vuitton
Louis Vuitton on the Champs Elysees is a 1,800 square meter boutique. Therefore, Louis Vuitton pays out $ 26,000,000 a year for its boutique. The Speedy 30 bag currently costs about $ 970 in Paris. It turns out that the Louis Vuitton boutique on the Champs Elysees needs to sell about 86 Speedy bags a day to justify the lease.



6. Madison Avenue, New York, Moncler store
Moncler maintains a flagship boutique on Madison Avenue. The area of ​​the store is 604 meters. Moncler spends $ 8.45 million on store leases per year. It turns out that it is enough to sell 16 Vallier down jackets a day, each of which costs $ 1,485, to recoup the rental costs.

7. New Bond Street, London - Chanel boutique
Chanel pays $ 16,100,000 a year for rent on New Bond Street. That's just 10 bags of the iconic 225 Reissue model, each priced at $ 4,900.

8. Ginza, Tokyo - Chanel boutique
Chanel stores are open in all key locations around the world, including Tokyo, where the brand's flagship spans 1,300 meters and costs $ 17.4 million a year. For example, you need to sell 11 Reissue 225 bags a day to get this money back.

9. Via Montenapoleone, Milan - Moncler
Moncler's flagship boutique is located in the heart of Milan, covering an area of ​​350 square meters. Moncler pays $ 4.700.000 million a year. This means that the brand needs to sell 11 Vallier down jackets every day to cover the costs.



Some stores on the most expensive streets are completely unprofitable, but they continue to exist at the expense of other boutiques of the brand. And most importantly, the fashion houses have everything calculated, and as a result, all the millions of dollars paid for rent are paid by buyers.

All expensive streets in the world, expensive because buyers are willing to pay extra for a certain prestige, which is still personified by the names of famous brands. Although now more and more people prefer just quality things at a reasonable price.

Chinese manufacturers are increasingly offering clothes and accessories that are absolutely not inferior in quality to products from famous Italian or French fashion houses. This is not surprising, because many brands have long moved their production to China, and Chinese quickly learn from experience, copy something, and sometimes make things even better.

Now the Chinese sell a lot of clothes and accessories that are not fakes of well-known brands, but are produced under their own trademark. With the same quality, the price of things of Chinese brands is several times lower and more attractive.

Therefore, you need to understand that when buying a bag from Louis Vuitton, we spend most of the money not for some incredible quality of the product, but pay fabulous fees for supermodels and unreasonable rental rates for retail space in boutiques.