Chanel increases prices in 2024 ︱Catch up or retreat? Chanel is rumored to have increased its price by 15% and is expected to be more than RMB 80,000. Handbag fans are turning to second-hand and mid-to-low-priced brands.
It has become the new normal for brand name handbags to increase their prices year after year. Among them, Chanel has made the most aggressive progress. It is widely rumored that Chanel will increase its price by 15% in 2024. In other words , if the Classic Flap Bag price increases again, there is a chance that it will be more than 80,000 and close to Hermes. Every time Chanel increases its prices, luxury brands such as Louis Vuitton and Bottega Veneta will also increase their prices one after the other like a domino effect. As well as encouraging women who want to buy a dream bag to buy it early and ‘to enjoy, it also makes many people stop chasing the trap and switch to the other side. Price range of brands and second-hand handbag market. Will this model of increasing prices to stimulate consumption still be effective in the next few years? Let’s study it together!
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In 2024, it is widely reported that Chanel will increase its price by 15%, making the prices of many handbag models close to Hermes.
Break through the high of 80,000! Chanel is rumored to increase prices by 15% again in 2024
According to a report by the New York Times, since the global start of the COVID-19 epidemic in 2019, although the economy has been greatly affected, the prices of luxury brands have increased by 25% due to inflation and the balancing of currency exchange rates around. the world. Among them, Chanel has the biggest increase, for example, the price of the Classic Flap Bag was $42,300 in 2020, and it has increased to $78,500 in 2023. In March 2024, it is said that the price will increase by 15%, which means has the opportunity to reach a price as high as 80,000 yuan, which is higher than that in 2020. The increase has almost doubled.
After the price of Chanel Flap Bag increased again, it is sure to be above the 80,000 level. (Getty Images)
To begin with, when Chanel raised prices for the first time in 2019, the rush-buy mentality of “buy early, enjoy early” arose and recorded a profit growth of 13% for the whole year. However, due to price increases successively, the growth slowed to single digits in 2023, recording only a profit growth of 13% With an increase of 5.8%, voices from the outside world also say that the increase is too high and prohibitive. What is the reason behind the price increase despite the economic downturn?
Why do prices keep rising year after year? Focus on the world’s richest 1% VIP customers
Prices increased significantly during the 2019 epidemic. The reason is that tourism is one of the main channels for the sale of luxury goods. When the tourism economy is almost wiped out due to epidemic prevention, as well as the unification of currency exchange rates and prices in markets around the world, it is also necessary to balance the transportation of goods and various items during the epidemic. Increasing operating costs ensure that the brand’s profits grow constantly. And until 2024, prices will still be increased twice a year. Luxury brands will focus on the world’s richest 1% VIP customers, pushing the value of luxury goods to the highest peak, strengthening the aloof status felt by wealthy customers, and maintaining the brand’s brand. world class positioning.
The awakening of middle class customers: Is it really limited?
Hermes will expand its workshop output in 2023, which is not as “scarce and limited” as imagined. (Getty Images)
As for handbag enthusiasts with middle incomes, they will start to wake up: Is a handbag really worth the price of a car? Most of the designer handbags sell “dream”, such as the brand’s century-old history, traditional craftsmanship, celebrities or aristocratic effect, etc. The most common one is hunger marketing. For example, the Hermes Birkin handbag requires waiting several years for delivery. When buying the handbag, you also have to enter the legendary “VIP room”. Because it is “very hard to buy”, when you actually own it, it increases your collection It has a higher luxury sense and adds a sense of nobility that must be bought in specialty store compared to online shopping.
But in fact, many handbag enthusiasts have gradually discovered that famous brand handbags are not so difficult to buy. For example, Hermes has expanded its workshop to increase production in 2023, and Birkin Bags produce more than 70,000 pieces per year. The difficulty of buying this may just be a feeling created by the brand. . Chanel handbags have never been sold in limited quantities, but the increase in price makes the barrier to buy the handbags extremely high, which is also one of the marketing techniques.
Year-on-year price increases have also pushed middle-income customers into the second-hand market. Not only is the supply large, but the prices are more affordable. If it’s really limited, why the supply is so abundant in the second hand market? The “reserved value” image is also part of the brand strategy of increasing prices year after year. Many handbag enthusiasts have also seen through what is commonly called “value retention.” In fact, no one can guarantee that the value of a. a handbag will rise or fall in ten years.
Value Considerations: Is Quality Committed to Price?
One of the selling strategies of luxury brands is to showcase the brand’s century-old craftsmanship to highlight the value difference from fast fashion. For example, Chanel and Loewe often use craftsmanship videos as promotions to show that the value of handbags is not just a piece of jewelry, but a work of art worth investing in.
（左） Louis Vuitton Swift P9 Bandoulière 40 $89,000；（右） Louis Vuitton Swift 30 $13,200
At the same time, many handbag enthusiasts have also discovered that the craftsmanship of handbags is not as good as before. For example, Chanel handbags changed from 24K gold buckles to 24K “full gold” buckles after 2008, and description from the official website has long been changed to “Gold Tone” “Buckle instead of “Gold”. Another example is Louis Vuitton, led by Pharrell Williams, who launched a replica of the Speedy P9 handbag. The style is almost exactly the same as the original, but a new color has been replaced and there is not much innovation, that is, the price has increased from $14,000 to $74,000 to $99,000 Is it really worth such a high price? Buy a trend, buy a dream, or get value for money? It’s left to the consumer’s discretion.
Are the best luxury goods still in fashion? The rise of the second-hand market
The rise of the second-hand market has become a treasure hunt for handbag aficionados. (Getty Images)
It is undeniable that luxury goods at top prices are still in demand, but the second-hand luxury goods market has seen the strongest growth in recent years. According to a report by “CBS News”, the global used luxury goods market is expected to increase to 350 billion by 2025. The sky-high prices for top luxury goods have made consumers see that it is only a dream and turn is luxury goods. to the second hand market for lower prices. Shop for similar luxury goods.
Affordable handbags such as COS popcorn bags and UNIQLO half moon bags are also very popular. (Getty Images)
Many luxury goods enthusiasts have also moved into the mid-price brand market. In last year’s LYST annual fashion rankings, Chanel and Louis Vuitton were no longer in the Top 10. Miu Miu, Loewe, Prada, and influential brands were high. brands such as Lemaire and Jacquemus are gradually expanding In addition, affordable handbags under a thousand yuan such as COS popcorn bags and UNIQLO half-month bags are also very popular. Top luxury goods are still a dream, but for middle class consumers, affordable prices are still the top priority.
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For all fashion fans, do you still want to own a Chanel handbag, or have you switched to a niche fashion brand that is more accessible to the masses? Come join the discussion!
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