Chanel raises prices on handbags again ahead of holiday season, and by up to 29 per cent; company cites rising costs and exchange rates to justify increases
- The French luxury brand has increased the price of two of its handbags – the Classic by 16 per cent, to US$8,400, and the 2.55 by 29 per cent, to over US$9,000
- Earlier Chanel had forecast a double-digit increase in 2021 profits over 2019 after having a good pandemic – and did not rule out further price increases
French luxury brand Chanel has hiked prices of some of its most sought after handbags at a time when strong consumer demand and low stocks in the run-up to the holiday shopping season are boosting their exclusivity.
The price of Chanel’s small Classic handbag has gone up by 16 per cent to €7,300 (US$8,400) since the end of September. The hike, first reported by French news channel BFM TV, was confirmed by Reuters using the Internet Archive, a repository of past web pages.
A spokesman for the group which is also known for its tweed suits and No. 5 perfume, said in an email that the price increase “only concerns our iconic models, namely the Timeless Classic and the 2.55”.
“Like all major luxury brands, we regularly adjust our prices to take into account changes in our production costs and raw material prices, as well as exchange rate fluctuations,” the spokesman said, without giving further details.
Price adjustments are made in such a way as to avoid excessive differences between regions, the spokesman added.
In June, Chanel’s finance chief had told Reuters that the group had not yet increased prices in 2021, but that this could change in the second half – in line with its policy of reviewing prices worldwide twice a year.