Chanel Set to Increase Once Again
Chanel price increases are nothing new. However, the recent increase this past year have made quiet the difference. Chanel raised its prices several times during the pandemic. First, we saw an increase of between 5 and 17 percent on certain bags in May 2020, due to a rise in the cost of certain raw materials and “the consequence of recent significant exchange rate fluctuations between the euro and certain local currencies.” The fashion house then hiked up another 5 percent increase in October 2020. This increase was also seen across other luxury brands such as Louis Vuitton, Dior, and Gucci. Another increase took place July 1st, which elevated prices of styles like the Chanel 19 Small bag up by 10 percent. Even more intensified was the Chanel’s Classics. The Medium, Jumbo, and Maxi Flap bags increased in price by almost 15 percent to $7,800 USD, $8,500, and the Classic Maxi version now costs $9,200 USD.
It is rumored to be going up yet again early November this year. Now nothing is set in stone as of what exactly is going up and by how much, but from the previous trends it most likely will be anywhere from 5-10 percent. It is also rumored to be most items offered at the Chanel boutiques including handbags, small leather goods, and shoes.
Chanel Sales Fell 18 percent in 2020
Chanel’s revenues fell by 18 percent on a year-over-year premise to $10.1 billion dollars in 2020. This was due to broad closures of its brick-and-mortar stores. The French design house expressed in its most recent yearly report, uncovering that they were down by 41.4 percent to $2.05 billion compared to the previous year. Chanel dropped by a larger rate than rivals LVMH (down 17 percent for 2020) and Hermès (down 6 percent), the privately-held brand, which started announcing its financials in 2018, expressed that it is “bouncing back quickly,” with incomes for the primary half of 2021 expanding by double-digits compared to its 2019 pre-pandemic numbers, driven to a great extent by buyers in China and the U.S.
Chanel Limits Handbags to One per Customer Each Year
Starting this month, in South Korea Chanel will enforce a one bag per customer per year rule. This will also apply to small leather goods such as wallets and cardholders. Though nothing like this has happened in North America yet, the fashion world is changing very quickly and its best to be prepared for changes.
Effect on The Resale Market
With this another colossal cost increase around the corner, the pre owned market will proceed to offer below retail costs for Chanel bags. The Re sale market will most likely also be seeing a rise in Chanel sales as prices become too high Brand new. This is a great way to invest in the Chanel market if you haven’t already. Read all about how Chanel can be a great investment here!