Why clothing brands charge more for exact cloth that is cheaper somewhere else?
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Because people are willing to pay that price. Prices are set by companies attempting to maximize profits. Generally speaking, higher pricing leads to lower sales, and lower pricing leads to more sales.
But higher prices also mean more profit per sale. Companies basically seek to optimize the value of (profit per sale * number of sales) and there is an optimal price for that which is found through trial and error. (or something more like gradient descent).
They charge that much because people perceive the value of that clothing as enough to warrant paying that price, in sufficient numbers that the company maximizes their profit.
That’s the rational model of pricing, from the company’s point of view. There are irrational factors too, or factors that only become rational when considering effects outside that simple profit x quantity model.
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