Coach’s hit handbag shows how less-expensive luxury is gaining ground

Ultra-luxury is losing its luster — and mid-tier competitors are capitalizing.

Industry bellwether LVMH Moët Hennessy Louis Vuitton SE, which reported weaker-than-expected sales in the latest quarter, was accused of selling a Dior bag that costs about $60 to make for $2,800. Meanwhile, Tapestry Inc.’s Coach is cashing in on cool with its $495 Tabby bag — a viral hit that costs a fraction of a similar shoulder bag from Dior or Chanel .

That’s just one example of how mid-tier luxury brands are weathering the current economic uncertainty better than their ultra-luxury and fast-fashion counterparts, as consumers seek quality and value without the sky-high prices amid a weaker global economy.

“There’s a bit of a backlash going on,” said Fflur Roberts, head of luxury goods at Euromo