Unpopular Opinion: Luxury brands are justified to charge high prices. They are just following the principle of value based pricing. People shouted "Luxury brands are looting us!” after seeing how cheap luxury bags are in China compared to global prices. But here’s a reminder: Luxury pricing = Value-based pricing. Not cost-based. No one is forcing you to buy that ₹2.5L ($3,000) handbag. It’s not essential. It’s about identity, aspiration, and exclusivity. And brands price it based on what people are willing to pay. So are they really looting you? Let’s look at net profit margins in 2024: Luxury Brands (Value-Based Pricing): LVMH (Louis Vuitton): ~16% Hermès: ~30% Kering (Gucci): ~8% Tech & SaaS Brands (Utility-Based, Recurring Revenue): Microsoft: ~36% Adobe: ~25% Meta: ~38% Luxury isn't even the most profitable game in town. These brands aren’t "looting" you. They're just really good at branding and know their customers well. If customers perceive high value and willingly pay, it’s smart pricing and not exploitation. Don’t confuse premium pricing with greed. Luxury sells dreams. And people love to buy them. #luxurybrands