A Chanel bag as expensive as an Hermès Birkin? Chanel’s price hikes are an attempt to make them as exclusive and hard to buy as rival’s iconic handbags, say experts

Since 2019, Chanel has raised prices on some of its handbags by almost two-thirds, and is cracking down on the number of bags that can be bought at one time

Insiders believe this could be aimed at making Chanel’s products more exclusive, to gain ground on the most iconic handbags of all: the Hermès Kelly and Birkin

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Chanel (right) is raising the prices of its handbags again in an effort to make its products as exclusive as the iconic Hermès Birkin (left).

Published: 4:15am, 24 Dec 2021

Chanel has raised global prices on some of its classic handbags by almost two-thirds since the end of 2019.

A spokeswoman said the hikes are in response to unspecified exchange-rate fluctuations, changes in production costs and to ensure its handbags cost roughly the same around the world. But luxury-sector executives and analysts say the magnitude of the increases signals an aggressive corporate strategy: asserting control over one of the brand’s most popular products while taking aim at higher-end rivals.

Since November 2019, the price of Chanel’s small classic flap bag in the US has gone up by 60 per cent to US$8,200, according to data compiled by Jefferies Group analyst Kathryn Parker.

The large version of the handbag known as the 2.55 now costs US$9,500 in the US following Chanel’s latest price hike, the brand’s fourth in two years. It cost US$7,400 in June, according to Parker.

Chanel has raised global prices on some of its classic handbags by almost two-thirds since the end of 2019. Photo: Inez and Vinoodh

Charles Gorra, chief executive officer of Rebag, which sells pre-owned luxury purses, says the push could be aimed at making Chanel’s products more exclusive, to gain ground on the most iconic handbags of all: the Birkin and Kelly bags by rival luxury house Hermès.