💬 QUOTED: "Brands need to give entry-price customers something new they can afford.”

In a twist of irony, luxury brands are working harder than ever to appeal to average shoppers.

Overall demand for luxury goods is weak, while prices are high. Luxury products are 55% more expensive on average today than they were back in 2019, according to HSBC estimates, driving away middle-income shoppers who are responsible for a significant portion of sales.

The impact: Burberry’s share price is at a 14-year low, while Gucci’s owner Kering has seen its market value drop 40% in 12 months because of problems at the Italian brand, the Wall Street Journal reports.

How are brands planning to woo middle-income shoppers back? Cheaper ways to carry Chihuahuas around handbags.

• Shoppers browsing Burberry’s US website for a bag costing less than $1,500 have ~20 options to choose from today, up from six at the start of 2023.
• Gucci has 27 sub-$1,500 purses on its website, including a range of “super mini” handbags (exactly what they sound like).

Big picture: Middle-income shoppers are imperative to a luxury market turnaround. More than half of all global luxury purchases by value are made by ~330 million people who spend less than $2,225/year on expensive handbags, clothing, and jewelry, according to Boston Consulting Group.

🎓⬇️ STAT OF THE DAY: What do high-school seniors and migratory birds have in common? They both tend to travel south at the first sign of autumn. Over the past two decades, the number of Northern high-schoolers who attend Southern public colleges and universities has increased by 84%, including a 30% jump between 2018-2022, per a new Wall Street Journal analysis of Education Department data. Experts largely attribute the trend to cheaper tuition, better weather, a more relaxed political environment, and an attractive social atmosphere (including college football tailgates/games, and a vibrant Greek life).

🤔 DID YOU KNOW? An estimated 60% of professional psychologists in the US have experienced at least one episode of clinical depression, while ~30% consider themselves suicidal, according to a 2013 study.

📰 WORTH A READ: How Chain Restaurants Use Smells to Entice Us → (Atlas Obscura)