Selling too well, Chanel continues to raise prices.
According to sources, Chanel will conduct a new round of price adjustments on September 1st, with an expected increase of up to 23%. The selling price of CF handbags will increase from 74900 to 81900, and the price of 2.55 handbags will also increase from 74900 to 81500. The 19 handbags, Le Boy handbags, and 22 handbags will also increase respectively. The Coco Handle, which was originally priced at 30000 yuan, may rise to 47900 yuan.
If the rumors are true, this will be Chanel’s second price increase this year. In March of this year, Chanel raised the global product prices, marking the brand’s widest range of involvement in recent years. The price of the medium CF handbag exceeded 70000 yuan. All other classic products, from entry-level chain packs to 2.55, have seen price increases ranging from 8% to 13%.
According to BAGAHOLIC data, the price of Chanel medium CF handbags increased 40 times between 1955 and 2022. According to the frequency and magnitude of Chanel’s price increase, the selling price of CF handbags is likely to exceed 100000 yuan within two years, and may reach as high as 200000 yuan in 2028.
By means of price hikes, Chanel is gradually pushing Herm è s within its price range, and its ambition to benchmark against Herm è s is almost evident, becoming a consensus within the industry that cannot be declared. After this price increase, CF handbags will officially be on par with the official price of Herm è s Platinum bags, although according to market intelligence, the actual purchase cost of the latter will still be at least 0.5 times higher.
However, unlike Herm è s’ reliance on Kelly and Birkin handbags, Chanel attempts to expand and strengthen its classic handbag matrix beyond its flagship CF handbag.
The price of Chanel’s latest popular 22 handbag has also rapidly skyrocketed. The latest released 22 handbag adds a metal fine chain on the classic quilted diamond pattern, priced at up to 68800 yuan, approaching the CF handbag and costing a full 20000 yuan more than the regular model.
It is worth noting that the 22 handbag is the first truly popular product since Creative Director Virginia Viard took over Chanel, and has become Chanel’s cash cow in the new fiscal year. Chanel CFO previously admitted that half of the brand’s revenue growth was driven by price increases, which were attributed to the brand’s range of popular handbags.
In addition, Chanel suddenly relaunched the classic handbag 31 Bag, which had been discontinued for 5 years, in June this year. The return did not involve any upgrades or modifications, and the price of the larger size increased by 9000 yuan to 43300 yuan compared to the previous 34300 yuan. The name of this handbag comes from the founder Coco Chanel’s Paris residence at 31 Compon Street. It first appeared at Chanel’s 2018 autumn/winter ready to wear fashion show and was one of the most eye-catching handbags at that time.
However, in comparison, the once popular 19 and Gabrielle stray bags and handbags are relatively weak.
In December last year, the Chanel official website suddenly removed the Chanel Gabrielle series handbags, and currently, there are no results from searching for related terms. The claim that “wandering bags have become tears of the times” has rapidly fermented on the internet.
“Wandering Bag” is a handbag designed by Karl Lagerfeld, former creative director of Chanel, inspired by brand founder Gabrielle Bonheur Chanel. It first appeared on Chanel’s Spring/Summer 2017 runway. This handbag can have up to 9 different ways of carrying, and was once loved by young consumers.
The 19 handbag was co created by Karl Lagerfeld and Virginia Viard and first appeared in the 2019 autumn/winter collection. Its soft material and enlarged diamond pattern are more straightforward and casual compared to classic styles such as CF.
However, due to the fact that the 19 handbag still continues the traditional square and long chain design framework of the classic model, this handbag has been significantly impacted after the release of the more innovative new product 22 handbag, which almost completely breaks away from the Chanel handbag. The design is sufficiently recognizable and also adapts to the trend of young consumers moving towards casual sports in their dressing styles.
Although the performance of Creative Director Virginia Viard has been controversial, her subtle innovation in Chanel products is being proven by market data after nearly 5 years in office. Virginia Viard has changed Chanel’s previous relatively formal dress style and instead catered to the needs of contemporary female consumers, introducing casual wear and accessories that are more suitable for contemporary lifestyles.
The success of 22 handbags is attributed to her observation of consumer leisure needs, and recently the popular Chanel jeans have become the brand’s latest hot selling product after the classic tweed jacket, while tweed jackets are facing a decline in demand due to limited wearing occasions. On Xiaohongshu, the Chanel jeans entry has over 20000 notes, indicating the popularity of the item.
Although Chanel has not ventured into the men’s clothing business, Chanel sports shoes also sell well. This year, the brand has launched a new pair of shoes similar to Nike’s classic Air Force No.1 sneakers, divided into low cut and high cut styles, priced at 8000 yuan and 9600 yuan respectively, which is more than 10 times the price of Nike.
Based on a deep understanding of female consumers, Chanel, with a keen sense of smell, has also become the first luxury brand to taste the Barbie trend cake this year.
In May of this year, Chanel released the 2023/24 early spring vacation series in Los Angeles, USA. Brand ambassador Margot Robbie drove into the venue in a black sedan before the show. This blonde and blue eyed Hollywood star is the lead actor in Barbie’s live action film. After the global premiere in July, viewers discovered that the film used a large number of Chanel’s works from the 1980s, ranging from suits, beach wear, sportswear, and various jewelry and accessories with brand logos.
