As reported by news outlets worldwide, Chanel will be raising the prices on its most in-demand handbags — a move that is said to help secure the French label’s hard-fought positioning in the luxury market.
This latest price adjustment of Chanel’s products marks the third price hike since the beginning of the pandemic. Notably, the price increase is said to range between 8% to as much as 15.5%, which places some of their bags on par with the retail prices of specific sought-after Hermès designs.
According to The Fashion Law, a Chanel spokesperson confirmed that this price increase will only be reflected on the label’s “iconic models, namely the Timeless Classic and the 2.55.” The spokesperson went on to mention that “like all major luxury (labels), Chanel regularly adjusts prices to take into account changes in our production costs and raw material prices, as well as exchange rate fluctuations.”
This latest move also follows other policies established by Chanel — currently in place in Korea, at least – to manage its exclusivity, such as implementing a limit on the number of products a customer can purchase from the label in a year. This applies to the Timeless Classic flap bag, the Coco Handle bag, and other small leather goods.
Although it should be highlighted that the latter policy exists for other luxury labels as well. And it is widely speculated that this is done so as to push back against the booming resale market, where the labels are challenged by a lack of control over the price, condition, and other potentially damaging factors to their own products. This in turn may affect consumer attitudes towards the branding of luxury labels negatively.
While Chanel has remained mum on the date of implementation of the price hike, it is understood that it is slated to take place sometime before the end of this year.
Equipped with this knowledge, will you need to make haste and dash down to a Chanel boutique to buy its coveted bags before the price goes up, just like hundreds of South Korean shoppers? Perhaps.
This article was first published in Harper’s Bazaar Singapore.