Since the outbreak of the COVID-19 pandemic last year, Chanel has increased prices three times. In May last year, Chanel raised prices globally for handbags and small leather goods. In November, Chanel announced another price adjustment in all necessary markets. Since 2018, the price of the Chanel Classic Medium Flap Bag has risen annually. It was $5,600 in 2018, increased by 3.5% to $5,800 in 2019, and during the pandemic in 2020, it went up by 12% to $6,500. Now, this bag costs $7,800.
Frequent price hikes make some consumers hesitant to buy now, but for die-hard Chanel fans, price increases only fuel their desire. Flavio Cereda, an analyst at investment bank Jefferies, recently reported, “Price increases are beneficial for Chanel, allowing them to dominate the leather goods market. Competitors like Dior either follow suit or attract customers unwilling to pay Chanel’s high prices.”
With rumors of another price increase, resale platforms like Vestiaire Collective and The RealReal have marked Chanel bags as “highest resale value” items. Prices on these second-hand platforms are also rising, which helps Chanel justify higher prices for new products. For luxury brands, price hikes are routine. They maintain exclusivity and adhere to luxury pricing principles. Post-pandemic, rising logistics costs and production cuts have impacted luxury brands’ profits, making price increases necessary. Chanel’s classic flap bags always see price hikes.
This frequent price increase means that new derivatives are now priced over $30,000. These versions often feature thicker chains, added handles, or decorative buckles on the classic flap bags. This has led some to feel they are being priced out of owning Chanel. To make a wise investment, focus on classic black Chanel bags, known for their versatility and value retention. The Chanel 19, hailed as the new classic, honors the 2.55 bag created by Chanel in February 1955.
The Chanel 19 features the brand’s signature chain design, made with soft, plush leather adorned with silver and antiqued gold hardware. Its flap style exudes elegance and casual charm. Available in three sizes, the small size is especially popular for its ability to hold essentials while maintaining a sleek look. Another evergreen favorite is the Gabrielle bag, named after Coco Chanel’s real name, Gabrielle Chanel. Its multi-carry design and dual-metal chain allow for various styling options.
This year, the Gabrielle bag has gained even more attention with a new size, fitting the demand for small yet practical bags. The updated version also features Chanel metal letters on the strap, increasing its appeal. The spring and summer’s most talked-about bag is the Small Box Flap, nicknamed “Little Gold Ball.” This dream bag has a new design with an adjustable chain using a gold ball, making it a must-have for the year. Another noteworthy Chanel series this year is the bucket bag, featuring a drawstring design for a casual, natural look.
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