Shopping for Chanel handbags? Better get them soon because they are expected to get a little pricier.
According to the Madison Avenue Spy, classic Chanel bags have already seen a 20% hike in European channels and similar hikes are expected in the U.S starting August 1st.
This increase is huge if you consider that “in 2008, a 227 Reissue was $2850. Today the same bag costs $3600 and could jump to $4100 if current indications are correct. That’s an approximate 40% increase in just two years.”
Why the rapid price hike? Some think it may be due to rising demand and manufacturing woes. While one sales associate indicated, “We don’t want Chanel to become like Louis Vuitton. They are taking more of an Hermes approach where it can take three years to get the bag you like,” she said. “We want Chanel to stay a lux item and not be Main Street.”
Remember, summer sees a surge of tourists. For the Chinese there is bargain shopping in Europe and the U.S. for luxury goods especially given increasingly favorable exchange rates. Price increases serve two goals — get people to buy quickly before the price increase and compensate for the exchange rate spread.
Or perhaps, Chanel is banking on the idea that its brand is one that can rely on its heritage to give it “investment” status. Then, price increases only add to its cachet.
photo credit: linda storti