There is a massive stir in the luxury fashion community as Chanel recently increased the prices of their handbags by an upwards of 20%. The luxury brand appears to boldly increase their prices drastically twice every year. Many fashion lovers are unhappy with these price increases.
According to PurseBlog, In 2022, Chanel sustained its customary double-digit revenue growth despite store closures in Russia and China. However, Jefferies research analysts notes that the sales boost could be attributed to a 21-30% price hike on its bags. This is over the past few years rather than an overall increase in sales volume.
The price increase is substantial. Only the small size Classic Flap remaining under $10,000 and the Maxi surpassing the $11,000 mark. The Classic models experienced a 16% increase, pushing most prices above $10,000. The Coco Handle, Chanel 19, and Pearl Crush all saw a 14% increase across all models.
What is currently being said about Chanel
A prominent YouTuber, Sophie Shohet states in her video that Chanel bags are at a point where they are not gaining in value. Most pre-loved bags were sold for almost retail value just a few years ago. Unfortunately, now it’s roughly 40% below retail value.
She also states the investment value are declining with other popular luxury items like bracelets and shoes. Ready-to-wear and iPhone covers are the ones to drop most in value after purchasing. Besides that, other luxury brands such as Christian Dior are also no stranger to having their handbags, like the Lady Dior, dropping in value.
Chanel’s alleged quality decline
A viral TikTok video shows the quality decline that Chanel specifically is going through. The video shows a black Chanel handbag looking lopsided. Others claim that the bag is not properly structured or made well, as in the video it shows that the bag is lopsided.
However, it is a clear understanding that the luxury brand is not catering to the masses, but to the elite. There are a number of luxury brands that are doing the contrary, but Chanel is not one of them. Unfortunately, there are no remarks made by the French luxury brand regarding their alleged quality decline.