What justifies the cost of designer dresses?

As the transparency around how a designer garment is created is increasing, does the label always justify its hefty price tag?

In the world of high fashion, where designer labels often overshadow the garments themselves, understanding the true value of a designer outfit is complex. The recently concluded Paris Haute Couture Week highlighted this with creations by Schiaparelli, Rahul Mishra, and Thom Browne, each reflecting the immense labour involved in making them.

Consider the Sabyasachi sari Alia Bhatt wore to the Met Gala earlier this year, which took 1,905 hours to create, or Emma Chamberlain's black Jean Paul Gaultier ensemble, demanding 640 hours. These one-of-a-kind couture garments owe their existence to the painstaking efforts of artisans, yet it is the brand names and designers that capture all the public attention and acclaim.

Today, luxury clothing, with its steep price tags, thrives on limited-edition releases, savvy social media strategies, and celebrity endorsements. Each year, brands increase the prices of their offerings. The worth of such garments lies in the precision of their cuts, the quality of the fabric, the craftsmanship, and the influence the brand wields. However, beyond these factors, the allure of a designer dress often transcends the physical garment itself.

What’s in a name?

For instance, a basic logo t-shirt sells at Gucci for nearly ₹50,000. Despite no real aesthetic, it has a significant demand, with multiple iterations produced every season. In India, artisanal label Kavana retails a 5.5-metre handwoven, hand-embroidered linen sari for ₹ 12,200 while Anavila offers a similar creation with printed motifs for ₹ 26,000. The latter’s name carries more prestige, and for many, owning a piece from a well-known label is a status symbol.  

Historically, designer labels symbolised exclusivity and wealth, accessible only to a select few. Today, as fashion houses join luxury conglomerates, mass-produced ready-to-wear clothing has begun to dominate, highlighting the power of a label.

Maximiliano Modesti, founder of 2M Ateliers, a house specialising in textile and embroidery design for international luxury labels, believes that in most cases, the brand name sells a designer garment. "Consumers often buy into big names because of the status symbol associated with it and want to wear clothes that match their status," he explains. He says that the retail price of a designer garment is ten times that of its production cost. Modesti recalls when he researched a white Uniqlo poplin shirt alongside a Dior poplin shirt and adds that in terms of quality and number of stitches, the Uniqlo shirt was very similar to Dior, if not better. People often justify purchasing designer shirts over high-street fashion because they believe the quality is superior and the clothes last longer, aligning with a sustainable approach to fashion, that is, more cost per wear and longevity. 

As the demand for luxury goods increases globally, the actual quality gap between designer and high-street fashion has narrowed, yet the perception of status and exclusivity associated with the former remains strong. “The prices of luxury items have increased exponentially, so has the volume and pace of production. This begs the question: are we really getting a high-quality item that will stand the test of time when the longevity factor—from a style perspective—seems to be missing too?” says Dubai-based fashion editor and private stylist Amrita Singh. When this is the case, not only has the consumer acquired a high-priced shirt of the same quality as a fast-fashion brand, but if it proves substandard, it may quickly wear out and end up at the back of the wardrobe or, worse, in a landfill.

"The consumer purchases the Dior shirt because they want the logo with the bee. But does that designer shirt carry the value of its price? Of course not. You've just paid for the marketing, packaging, and fashion show. And to reassure yourself that you belong to a certain elite. It's a marketing scam," adds Modesti. Brands like Dior, Fendi, Saint Laurent, and Armani have come under the microscope in the past for their murky supply chains. More recently, Dior's suppliers in Milan were investigated after it was discovered that the label paid their labourers  a mere €53 to manufacture a €2600 bag. Given the low cost of manufacturing the bag, its retail price doesn't add up, yet Dior bags sell fast globally. In 2023, Dior's sales in India alone were up by 20 percent compared to 2022.

Targeting a new aspirational buyer

Additionally, brands have swiftly targeted aspirational consumers, especially in emerging markets. “There has been a major shift in brand positioning over the past decade and an increase in the middle-class population now accessing these brands,” says Modesti. In India, the rise of aspirational shoppers has been particularly pronounced. A Goldman Sachs report titled The Rise of ‘Affluent India’, states that the cohort of affluent consumers in the country will grow from 60 million in 2023 to 100 million by 2027. Luxury labels are responding quickly, opening boutiques across India. Once home to only a few luxury stores, the country now boasts brands like Saint Laurent, Valentino, and Ralph Lauren. Moreover, offering more accessible items like t-shirts, hoodies, and jeans allows aspirational buyers to own a piece of the big brands. The issue with extended categories is that consumers believe they're buying luxury, but a simple white t-shirt with a designer label lacks any real luxurious element. “If you speak with a Dior sales associate in Paris, they’ll tell you the bestsellers are caps, t-shirts, and sneakers—what I call prime products—and this is not true luxury. We’ve entered an era of mass appeal and mass-produced luxury,” adds Modesti.

Matters of provenance 

The "made in" label is another factor influencing the sales of pieces from an international designer brand. For instance, when a designer garment holds a ‘Made in Italy’ or ’‘Made in France’ tag, consumers believe it to be superior, given the cost of manufacturing in Europe is far higher than in a developing country. Sometimes, this is problematic, as multiple luxury labels outsource workmanship to India, and despite more than 50 per cent of the manufacturing process carried out in India, a ‘Made in France’ label is still stitched on it.

Last year, a Bloomberg report, published soon after the much-lauded Dior India show in Mumbai, cited: "Despite the brand's social media blitz about its India show, a handful of key pieces from the Mumbai collection didn't contain "Made in India" labels in the Paris flagship store months after the March unveiling, including garments where exporters estimated that more than 90 per cent of labour was completed on the subcontinent." The regulations for labelling of goods made outside the European Union state: “If two or more countries are involved in the production of goods, the concept of last, substantial transformation determines the origin of the goods.” The "substantial transformation" part is often used as a loophole for luxury brands to change the origin of the garment tag which can be misleading for consumers.

Elsewhere, established brands have vast marketing resources to create compelling campaigns and collaborate with celebrities, further increasing the label’s value and appeal. In October 2023, Louis Vuitton unveiled its women’s fashion campaign for the Go-14 and Capucines bags featuring Elaine Zhong, Hoyeon, Deepika Padukone, and Léa Seydoux as its ambassadors. Using celebrities from four different countries as brand ambassadors can propel outreach, giving their products huge exposure online. The LVMH group reported record growth in 2023, with a revenue of €86.2 billion, and is the most valuable luxury brand in the world with a brand value of US$130 billion. Every new collection unveiled by most luxury labels is followed by a digital media campaign and partnerships with A-list celebrities and mega influencers from across the globe, further spotlighting the label.

Is every designer piece a well-thought-out purchase?

A trend one comes across in the social media campaigns of fashion labels is the focus on the number of hours it takes to create a garment. Ramesh Menon, founder of NGO Save The Loom, believes such videos to be an inaccurate description of the number of man hours. "I see people throw in random numbers like 10,000 and 15,000 hours, which doesn't make any economic sense. To justify the price of the garment, the number of hours [spent making the garment] is increased. Transparency of pricing is demanded when people work with social organisations or artisans. But no one asks a Manish Malhotra to explain his pricing," says Menon. He explains that a certain mindset is associated with a designer dress that justifies the prices to consumers. "People buying a saree directly from a weaver community will find ₹5,000 expensive, but that same person will buy a Rahul Mishra without finding it pricey because they feel they've acquired a sense of brand." 

While the brand name holds immense power, for those willing to put some thought into their luxury purchases, it is undeniable that a designer dress can stand out from a high-street garment for many reasons. For Singh, a designer garment is a well-thought-out purchase, and she asks several questions before buying. "I think what justifies the high price for me is the craftsmanship, the materials, whether it resonates with my style as a consumer, and how much wear I'm going to get out of it. If it's a Gucci t-shirt with a logo, that's not worth the money—it's a basic piece with an excessive price point and low cost per wear," she elaborates. Other factors Singh considers include the silhouette's shape, cut, and fit. "Anything with an artisanal factor is a lot more appealing. If a designer garment has certain detailing, it's worth investing in—these are pieces you will cherish for a long time."

The same philosophy can extend to the signature designs and textile innovation of legacy Indian designers, such as Anamika Khanna, Tarun Tahiliani, and Sabyasachi, who have built a cult following because of their pioneering designs, whether it's a simple pre-draped Tahiliani saree or an avant-garde embellished Anamika Khanna cape. Some of their creations transcend seasons, and their cuts are difficult to replicate, making them a worthy investment.

Charu Chauhan, senior merchandiser at Ogaan, explains that in terms of craftsmanship, quality, finesse, and originality of design and concept, high-end designers are providing a far richer product than many upcoming designers, and they charge a huge premium for the brand that they have built today. She adds that the key elements to look for when stocking a designer are if they develop their own textiles, the cuts, and innovation in design, among others. "For instance, Payal Khandwala's versatile separates, Raw Mango's special weaves, Suket Dhir developing prints on brocades—the USP of each brand is what justifies the pricing of their products," elaborates Chauhan. 

In today's fashion landscape, the label on a garment often overshadows the craftsmanship and materials used to create it. As luxury conglomerates focus on numbers, legacy brands are becoming more commercial, with creative directors often forgoing creativity for sales. Additionally, with more and more disposable incomes, everyone wants a piece of the luxury lifestyle—even if it is acquired by owning products from extended categories that boast the brand name.

However, the mass appeal and subsequent production scale raises questions about the true value and sustainability of luxury pieces. While some consumers prioritise the brand for its status symbol, others seek originality and quality. For discerning buyers, a well-crafted garment that showcases a unique design and meticulous detailing becomes a worthy investment. "An Elie Saab lace and a Naushad Ali cotton both speak to me regarding material quality. The brand comes second. The garments must have an edge that I can soften or sharpen based on my mood," says writer Upasana Kartik Garg. Ultimately, the sale of a designer garment hinges on a blend of brand prestige, superior craftsmanship, precise cuts, luxurious fabrics, and strategic marketing. Consumers who look beyond the brand name will find greater value and satisfaction in their purchases, ensuring their investments stand the test of time.

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