It's official. Chanel's prices have gone up in Europe on Wednesday, August 10th, 2022. According toPurseBop, prices of Chanel's Classic Flaps in different sizes increased by an average of 9%. Here is a full breakdown of the price changes:
Item | Price in Europe before | Price in Europe after | % change | Price in Europe after (converted to CAD) | Retail Price in Canada |
Chanel Classic Flap Small | €7750 | €8450 | +9.03% | 11,079.47 CAD | 10,375 CAD |
Chanel Classic Flap Medium | €8250 | €8990 | +8.97% | 11,787.50 CAD | 11,050 CAD |
Chanel Classic Flap Jumbo | €8900 | €9700 | +8.99% | 12, 718.44 CAD | 11,900 CAD |
Chanel Mini 2.55 | €4000 | €4350 | +8.75% | 5,703.63 CAD | 5,350 CAD |
Chanel 2.55 | €8250 | €8990 | +8.97% | 11,787.50 CAD | 11,050 CAD |
Chanel Medium Boy Bag | €5400 | €5900 | +9.26% | 7,735.96 CAD | 7,225 CAD |
Chanel Mini Coco Handle | €4350 | €4750 | +9.2% | 6,228.10 CAD | 6,000 CAD |
Rumour has it that Chanel increased the price of some of its best-selling classics to ensure there isn't a vast disparity in prices for the same bags across different countries. It is a part of Chanel's global price harmonization strategy – in which Chanel price matches its merchandise across the globe.
With the recent two-decade low crash of the Euro price rendering it almost equal to the US Dollar, many tourists (especially Americans) took to Europe for their summer vacations this year.
They flocked to Paris to shop at Hermes, Louis Vuitton, and Chanel, among many other luxury brands, at prices much cheaper than those in the US. As a result, these overseas shoppers enjoyed considerable savings between the price disparity and receiving the VAT refund.
How is the resale market affected?
Over the years, as Chanel's prices increased, the prices of Chanel bags in the resale market also followed suit to reflect the sudden increase in demand for Chanel bags. And it is safe to say that the demand for Chanel bags is higher than ever – especially since the quota system's implementation in June 2022 (read all about ithere).
The ever-increasing prices and scarcity of Chanel bags at the retail level led to a steep decline in access to these covetable bags; as a result, many have turned to the resale market to access the bags that aren't available to them in the boutiques.
What are your thoughts on the Chanel price increase in Europe? This would be Chanel's second price hike in Europe in six months (the last increase was March 1st, 2022); what do you think these higher prices mean globally for Chanel fans?
Tags: Chanel Chanel bags Designer Fashion Community Designer Handbags Fashion Insider Luxury 101
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FASHION INSIDERS Jun 23, 2022
As a seasoned fashion industry expert and enthusiast, my extensive knowledge of luxury brands, particularly Chanel, allows me to analyze and provide valuable insights into the recent price increase that occurred on Wednesday, August 10th, 2022. The information you provided aligns with my comprehensive understanding of the luxury fashion market.
Firstly, the evidence of Chanel's price hike in Europe, specifically in the pricing of Classic Flap bags, reflects a strategic move by the brand. The price increases range from 8.75% to 9.26%, with the objective of harmonizing prices globally. This aligns with Chanel's broader strategy of ensuring consistency in the cost of its merchandise across different countries. The detailed breakdown of price changes for various Chanel products demonstrates the meticulous approach the brand has taken in implementing these adjustments.
Moreover, the speculation about the motivation behind the price increase, addressing the potential concern of a vast disparity in prices for the same bags across different countries, underscores Chanel's commitment to maintaining a balanced market. This strategic move also takes into account the recent economic developments, such as the Euro reaching a two-decade low against the US Dollar, which influenced the influx of tourists, particularly Americans, to Europe for luxury shopping.
The information also touches upon the impact of these price changes on the resale market. It highlights the correlation between Chanel's retail prices and the subsequent adjustments in the resale market. The increased demand for Chanel bags, coupled with limited availability at the retail level, has led consumers to turn to the resale market to access these coveted items. This insight aligns with the broader trends in the luxury resale market, reflecting the growing demand for Chanel products.
In conclusion, Chanel's second price hike in Europe within six months signifies a strategic response to global economic dynamics and consumer behavior. The brand's commitment to price harmonization, coupled with the implications for the resale market, paints a comprehensive picture of the evolving landscape of luxury fashion. For Chanel enthusiasts globally, these price adjustments signify not only changes in the economic landscape but also impact their access to and valuation of coveted Chanel products.
