Be prepared for another potential Chanel handbag price hike
Come September 2023 and the prices of Chanel handbags might go up once again, Bloomberg reported on 25 May. If raised, this will be the second time this year that Chanel would be changing the price tag across the board for one of its most coveted creations.
The French luxury fashion house founded by Coco Chanel is renowned for its handbags, carried as prized accessories by some of the most famous names on the planet including Rihanna, Kim Kardashian, Rita Ora, Katy Perry, Gwyneth Paltrow and Demi Lovato among many others.
More about the Chanel handbags price rise
Prices reviewed twice a year
The report says that Chanel reviews handbag prices twice in a year — in March and in September.
Chanel’s chief financial officer (CFO) Philippe Blondiaux told Bloomberg that the brand raised the prices of the bags, including the famous flap bags, by an average of 8 per cent worldwide in March.
Blondiaux told the publication that the brand will be considering a change in price in September by taking into account currency volatility and input-cost inflation. As per the report, it will also look at reducing the difference in prices of the same product across regions.
The CFO said that the increase in prices in March varied as per country.
According to the report, while a 25-centimetre Birkin bag by Hermès currently sells for around EUR 8,000 (SGD 11,600), a medium-size flap bag currently costs about EUR 9,700 (SGD 14,000) in France. The current price of the Chanel flap bag is about EUR 1,900 (SGD 2,700) more than it was 18 months ago.
No matter the price rise, Chanel bags are hot property. The CFO said that sales rose by 17 per cent in 2022 with inflation-induced higher prices combined with increased unit sales.
Value of Chanel products most likely to increase
Chanel and Hermès’ Birkin and Kelly bags are among the most sought-after luxury bags not only in the retail market but also the secondary market. They are seen as major investments thanks to the phenomenal price rises of the bags over the decades.
For instance, the price of the Chanel small classic flap bag in the US went up by around 60 per cent between November 2019 and December 2021.
A March 2023 Sotheby’s report puts the money on Chanel in particular. The report says that the value of a Chanel bag in excellent condition has gone up at about 10-15 per cent per year.
“Chanel is one of the few brands that will most likely increase in value versus depreciate the minute it leaves the store,” says the report.
It also notes that the price rises of Chanel bags help build exclusivity for the brand.
(Hero and Featured images: Chanel)
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