Chanel increases prices to match Hermes', are you buying?
Chanel has raised their prices yet again, this marks the third increase since the start of the pandemic, and fingers are crossed that this is the last mark-up.
Chanel, an iconic French fashion house, was first founded by Coco Chanel in 1910 but since then has become a world renowned fashion brand that everyone desires to grab. I bet not a single one of your friends can say they don't know about Chanel. I sure can't!
High Demand, High Dollar
Back in the 1910, Coco Chanel was a fashion designer who created quilted handbags, fashion jewelry, ornate gowns, and such for you name it.... Back then, though, the iconic quilted medium flap bag we all love is stated to have been around $220! What I would kill to buy a medium Chanel flap bag for around $200, but that was in 1955.
In 1990, that same medium flap bag jumped to $1,150!!! The truth is it's not uncommon for brands to increase their prices annually due to materials and labor costs.
Post-Pandemic Prices
With inflation causing the prices of material to increase, well then so will the price of the end-product, it makes sense, but I sure do hate it.
Add in the pandemic, less employees able to work, less goods able to be produced, and boom you have yourself a higher demand and sliver of inventory; mix that together and we're all in line for a bag with a 60% mark up. What's a girl to do?
Back in 2021 Prices jumped again: BELIEVE IT!
Chanel Medium Flap Bag
January of 2021: $6,800
July 2021: $7,800
November 2021: $8,800
Even Chanel's Classic Small Flap Bag jumped from $7,100 to $8,200 and that's a small tote. Other bags such as:
The Boy
The Gabrielle
Chanel 19
have increased by 10 - 15.5% -- but that's still not bad, unless you're a bag stuffer like most of us and need the space. What? Don't tell me you don't have:
a wallet
keys
some floss
breath mint
your favorite lipgloss
some lose change
perfume
and don't forget the random hookah tips from last night! A girl needs the space...! We all do it so I get it if you need the big mama, known as the Jumbo and the maxi, well they've jumped to $9,500 and $10,000! Are you leaving your purse stuffers home or making room in the bank and your closet?
Hermes or Chanel
That was a joke, we all know you're making room. In simpler terms Chanel is the new Hermes -- taking on their marketing strategies. Hermes had decided a long time ago that they would limit how many bags a customer could purchase per calendar year, the exclusivity effect.
Chanel merley adopted their technique and said, "We will take that! Oh,and the one bag per person. Yes, that too"! It sucks to think we can't buy in bulk, but hey....
Other reknowed fashion brands like, Louis Vuitton and Rolex have done similar things as well. In fact, Rolex has been doing the exact same thing, in Korea for instance, as the demand increases and supplies have become limited -- the price spikes. So if you were curious as to why you haven't seen then sparkling in the windows, well they're a bit low in stock.
And don't get me started on Louis Vuitton. Same thing! Louis Vuitton has been known to prevent. consumers from purchasing more than two of the same handbag styles within a calendar year.
All this and for what? Profit?
Not quite. Yes, it's great for profit margins on their end but it's also an attempt to stop "professional buyers" from reselling their luxury goods "through small shops throughout Asia, or through online retailers like eBay," the New York Times wrote back in 08'.
The truth is...with Chanel's jumbo and maxi being priced at $9.5k and $10k, it's mirroring the starting price of the newly coveted Hermes Birkin and Kelly bags. Go figure. The crazy thing is it doesn't matter.
Despite the price increases, Chanel still remains a highly wanted brand -- with lines out the door! Furthermore, the price increase hasn't stopped a thing. Chanel still retains high resale values and is unlikely to ever change.
Chanel Has Done It
Being that lines are still outside the door; yeah, their complaints on the price increases are just as lengthy online, but who cares? Their real goals have been met.
The goal: retain their luxury iconic position as a top tier high-end fashion brand name, without falling victim to the upcoming resale market's new foothold in the fashion industry....
Are you in line or saving time by ordering online?