With the economy in several countries around the globe being shutdown in May due to COVID-19, many businesses and industries have suffered greatly. Although some brands have coped with COVID-19 through price hikes and surcharges, other businesses may not recover/return to their pre-COVID-19 size/profitability.
In the world of designer fashion, consumers often are less sensitive to price increases, which is why it didn’t seem likely that the pandemic would impact luxury powerhouses like Chanel or Louis Vuitton product sales drastically.
However, on May 14, Chanel announced that they would be implementing a 5 to 17 percent price increase (in euros) on select handbags including the “…iconic 11.12 and 2.55, as well as Boy, Gabrielle, Chanel 19 bags and certain small leather goods.”
Other reports have indicated that the price increase extends beyond 17%, with “…confirmation that on the high end there was a 25% change for the Mini Square Flap Bag as well as a 21% increase on the Small Classic Flap and Reissue.”
Chanel reportedly implemented these price increases as a result of the rise in raw material costs due to COVID-19.
What does this mean for bag addicts?
Collectors and bag addicts are known to wait to purchase from luxury brands in attempt to get the best deal possible. However, price increases for high-end brands like Chanel are not uncommon.
Some bag-lovers have expressed feelings of disappointment with the brand given that the increase was implemented during a global pandemic, which has been described by some as being a bit ‘tone deaf.’
However, the reality is that a Chanel handbag is more than fashion statement piece; it’s an investment. People who purchased a Chanel bag prior to the 2020 price increase are looking at a significant return on the investment if they decide to resell or cosign the handbag in the near future.
When is it the ‘right time’ to buy a Chanel bag?
If you’re someone that was or currently is waiting for the ‘best time’ to invest in a Chanel handbag, the reality is, the current listed price may be the ‘best deal’ available in the foreseeable future.
In fact, although it has not been confirmed, there have been reports that there will be a second Chanel price increase sometime in October, which is why it may be a good option to look into purchasing a bag sometime soon before this happens, to ensure you are able to generate some degree of return on your investment.
Investments don’t always come in the form of stocks or non-tangible purchases; sometimes they’re disguised as great accessories.
Consign with us or shop our Chanel collection
If you’re looking to consign with us and resell a Chanel handbag you own, click here to get a free quote to see how much of a return-on-investment you can generate.
To invest and shop Chanel, check out our collection of pre-loved handbags to save big. All Luxe Du Jour handbags are authentic and in great condition.