The article discusses the increasing focus of luxury brands on post-sales services such as warranties and in-house repairs. Chanel, for example, has been expanding its repair workshops globally, offering repair services for products like bags and wallets with a five-year warranty. Other luxury brands are also emphasizing repair services to cater to consumer demand and enhance their sustainability credentials.
The rising prices of luxury goods have prompted brands to justify their pricing by offering additional value through warranties and repair services. By extending the longevity of their products and adding value to their offerings, brands aim to maintain customer loyalty and attract new customers. Moreover, offering after-care services incentivizes consumers to purchase products directly from the brand, thereby maintaining control over distribution channels.
In addition to enhancing customer satisfaction, focusing on warranties and repair services allows brands to maintain control over the market for their products, even after the initial sale. By offering in-house repairs, brands can ensure the authenticity and quality of their products, especially in comparison to unauthorized retailers or third-party repair services.
However, luxury brands must be cautious in their warranty and repair terms to avoid regulatory scrutiny. The Federal Trade Commission has taken action against companies that restrict warranty coverage based on the use of third-party repair services or parts, emphasizing the importance of fair warranty practices in the luxury market.
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