On March 27, 2024, French luxury brand Chanel once again raised handbag prices globally.
At present, taking the price of Chanel’s official website in the United States as an example, the price of Chanel’s Classic Flap Bag has recently increased by 6-8%, with all classic 11.12 handbags retailing for over $10000 (priced above RMB 77500 on the Chinese official website). Taking the black and gold metal sheepskin style as an example, the current retail price is $10800 (priced at 84000 yuan on the Chinese official website), which is a 6% increase from $10200 in 2023.
In addition, the price of Chanel Boy Bag has also increased by 4% -5%, and the current retail price is between $6400 and $7300 (priced at 49800 to 57900 yuan on the Chinese official website).
A Chanel spokesperson recently told Bloomberg, “In the past year, raw material prices and production costs have continued to rise, leading us to adjust the prices of our boutique stores. This price adjustment will take effect in all markets from March 27, 2024, with an average adjustment rate of 6% in euros. This is fair to all of our customers.”
The industry expects that Chanel handbags will experience a new round of price increases later this year. Chanel CFO Philippe Blondiaux recently stated, “We usually adjust prices twice a year (in March and September). This is our usual practice and we will continue to do so in the future.”.
Taking the prices of the following two main flap bags as an example:
The Chanel 2.55 handbag was first launched in 1955, priced at $220; In 2024, the selling price of this handbag is $10800.
The Chanel Classic 11.12 handbag was launched in 1983 and was priced at around $1000 in the 1980s; In 2024, the selling price of this handbag was $10800, an increase of nearly 10 times!
According to data from Sotheby’s Auction, the price of Chanel handbags has remained stable since 2008, and the rate of price increase has accelerated in the past five years. The increase in production costs and supply disruptions caused by the pandemic have led to an increase in manufacturing costs. But rising costs cannot explain all the problems. The growth in global demand for Chanel handbags is also an important factor. Despite top luxury brands steadily increasing prices, demand has not decreased, as evidenced by the strong performance in the luxury second-hand resale market.
At Sotheby’s auction house, Chanel’s resale price has reached a record high, and there is a high demand for antique bags. A mid size Chanel classic flap antique bag from the 1990s is priced at over $6000, which is five times its retail price in the 1990s (about $1200).
Collectors are all searching for rare styles from previous seasons, as well as new styles like the 2022 CC “In Love” Chanel Heart Bag that have already sold out. Some styles from the previous seasons were priced significantly higher than the retail price, such as the 2014 Chanel Graffiti Art School Backpack, as well as many rare and collectible Chanel handbags, such as the mini van hard dinner bag.
