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Chanel increases prices again in Europe and Asia -Breaking


© Reuters. FILE PHOTO – The Chanel logo is displayed in a Paris store, France on June 18, 2020. REUTERS/Charles Platiau/File Photo

MILAN (Reuters – The prices of some Chanel handbags have increased after three price increases in 2021.

Major luxury brands raised their prices during the coronavirus crisis to preserve margins, and to offset rising transport and logistics costs. Chanel, however has been aggressiver than its rivals in an attempt to preserve the brand’s exclusivity.

The handbag’s classic small size was 7,750 Euros ($8,454), which is 6% less than the November 2018 price. It was purchased for 5,500 euro in January 2021 but sold for only 4,550 euros in November 2019, a price that is almost identical to the one it cost in November 2018.

Jefferies analysts have found that Chanel prices for its famous handbags has increased by on average 71% over the period before the pandemic. The small, classic Chanel handbag is now 96% cheaper in Hong Kong than it was at the beginning of 2019

Chanel released a statement saying that the price increase implemented yesterday was not an actual price hike, but rather a harmonisation between our prices for the entire in-store offering, a principle which has been in place since 2015 and seeks to reduce price differences in markets we’re present on.

The spokesperson for the company confirmed that its accessories and core handbags were up in price on Thursday. They also went up 5% in Britain, 5% each in South Korea and Japan, and 8% each in Hong Kong. The prices remained the same in China as they were in the United States.

Jefferies stated that the price difference for Chanel handbags in Europe and China had dropped below 10% following Thursday’s price change, as opposed to 3-40% for luxury brands.

($1 = 0.9168 euros)

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