You probably already noticed it or maybe you were even shocked if you wanted to buy a new Chanel bag. The reason for this is the immense increase in bag prices at the Chanel fashion house over the last few years.
Chanel has always stood for style, prestige and elegance. Chanel has also never been popular for offering cheap prices. Nevertheless, the fashion brand has experienced a price increase, which we will take a closer look at.
The first thing to mention is that Chanel has not only increased prices this year, in fact this happens every year, sometimes even several times in one year.
For example, in May 2020, the prices of some items increased by 5 to 17%, and in Asia prices were even increased by up to 25%. This was followed by another increase of about 5% in October 2020, especially in the UK, China, Hong Kong, Japan and South Korea, so that in 2020 the prices of some items increased by more than 20% in total.
This was then followed by a 4% to 7% increase in January 2021.
At first glance, these numbers might give the impression that the prices of Chanel handbags didn’t increase much. However, if you look at the former prices for a Chanel handbag, you quickly realize that it’s – on the contrary – a significant increase. Indeed, the price increase may well lead to an increase of € 300 or even more.
The Chanel Classic Flap Bag, the Chanel Reissue 2.55 Bag, and the Chanel Boy Bag are particularly affected. The most striking increase, however, experienced the legendary “Chanel Wallet on Chain Bag” (WOC), which has seen a price increase of 24%. Taking a closer look at the January 2021 price increase, the following increases are the most noticeable in addition to the WOC:
The price of the Chanel Classic Small Flapbag increased by 6.9%, the Reissue 224 Bag experienced a price increase of 6.9% as well, and the price of the Chanel19 Maxi Bag grew by the same amount. In the case of the Legendary Boy Bag, the price of the Small Boy Bag increased by 6.5%, while the price of the Medium Boy Bag increased by 6%. On the other hand, the price of the
Large Boy Bag remained the same.
But what are the actual reasons behind the increase?
On the one hand, the exceptional craftsmanship plays a major role in the pricing, as well as the high-quality materials that are used for the respective bags. In addition, the perception of consumers influences the price regulation. This is because Chanel handbags are considered status symbols and represent prestige and elegance. Due to their quality and exclusivity, they arouse the interest of many people, what permanently increases the demand. Therefore, on the one hand, the price increases could be a reaction to the increasing demand for the iconic bags.
Chanel also mentioned that the price increases are “the consequence of the recent significant fluctuations in the exchange rate between the euro and certain local currencies.” The adjustments would thus ensure that “Chanel items are sold at equivalent price levels worldwide.” The adjustments are also due to current circumstances, as those are particularly important at a time when “international travel is severely restricted,” the fashion house said.
Therefore, it is further suspected that the immense price increase is related to the corona virus, in that Chanel is trying to compensate for its losses, which occurred as a result of the Covid-19-related store closures, through higher prices. This is because Covid-19 has had an economic impact on many industries, including the fashion industry. It is worth remembering not only the protracted store closures, but also supply difficulties, especially supply chain disruptions, as well as global expenses during the pandemic.
Generally, a price increase is common for luxury design brands. Further, Chanel is definitely not the only fashion house that raises its prices annually.
Experts suspect that other luxury fashion brands will follow suit and aim to increase their prices to compensate for the losses caused by the pandemic. Prices have already been raised at LVMH’s top brands Louis Vuitton and Christian Dior, as well as at the fashion brands Gucci, Prada and Salvatore Ferragamo, that belong to Kerings.
Chanel is also increasingly being compared to the icons from the Hermès fashion house- the Birkin bag, as well as the Kelly bag. While in the past you had to spend much more for a Hermès bag than for a Chanel bag, in May 2020 there was “only” a 9.2% price difference between the Hermès Birkin Bag 30 and the Chanel Maxi Bag.
This was not the case in the past.
Moreover, the comparison with Asia and the USA is remarkable. Although Chanel and other fashion houses have stated that the price difference between Asia and the rest of the world has been reduced, experts estimate that the bags on the Chinese market are sometimes up to 30% more expensive than in Europe.
But let’s come to the main question: is it still worth investing in a Chanel bag today? Is it still worth it, especially with the again increased prices?
However, now is probably the best time to invest in a Chanel bag. After all, the prices will not stop rising. On the contrary, they continue to increase every year. Regarding the question whether it can generally be considered an investment to buy an expensive designer bag- do not be fooled. This always depends on the individual case. While the Hermès Birkin and Kelly Bag can definitely be seen as an investment, with Chanel it depends on the particular model.
But this should not be the only reason to buy a Chanel bag. However, I can recommend to inform yourself about pre-loved Chanel bags. Those are often in a very good condition, but cost less. Partially, the bags were worn only very rarely, but at the same time the price difference compared to brand new bags is significant. From my personal experience, however, I can only say:
Sometimes it’s good to treat yourself and reward yourself. In any case, you will not regret it…