Luxury group Chanel has raised the price of some of its most sought-after handbags as the holiday season approaches.
Chanel has increased the price of some of its iconic bags in the space of a few months. Among them, Chanel’s Small Classic handbag has risen 16 percent to 7,300 euros since the end of September. In another example, the brand’s iconic 2.55 quilted leather with gold chain was priced at 7,800 euros on Chanel’s website on Thursday compared to 6,050 euros in December 2020, an increase of nearly 30%.
A spokesperson for the group said in an email that the price increase “only affects our iconic models, namely the Timeless Classic and the 2.55.”
Last year, Chanel’s sales fell 17.6 percent, but its core profit margin was about 20 percent, analysts said, making it one of the most profitable companies in the luxury sector. It said in June that it expects double-digit revenue growth in 2021 from pre-pandemic levels.
“Like all major luxury brands, we regularly adjust our prices to reflect changes in our production costs and raw material prices, as well as currency fluctuations,” the spokesperson said. “Price adjustments are made to avoid excessive differences between regions.”
After announcing a purchase limit for its bags last October to prevent illegal resale, Chanel is taking it up a notch by raising its prices. A tactic of exclusivity at a time when luxury is more than ever a long-term investment and a guarantee of durability.
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Featured photo : © Chanel
