CHANEL Tests Purse Lovers With $3,000 Price Hikes
CHANEL SA’s small Classic Flap bag was always a luxury item, but after three price hikes last year, it is selling for $8,200. That is up from the $5,200 it cost in 2019.
The French fashion house has been raising prices at a faster pace than other luxury brands, analysts say, prompting an outcry from some shoppers and testing their willingness to pay.
CHANEL increased its prices for 2023 again, and we share which bags are affected and by how much. It came as a surprise to absolutely no one, but considering the latest hikes for CHANEL bags, it’s hard not to wonder when and if the price increases will see an end.
CHANEL 2023 Price Increase Explained
CHANEL’s chief financial officer, Philippe Blondiaux, has shared insights into the CHANEL price increases. Last summer, he said the brand could implement a price increase “to account for currency fluctuations and inflation.” Moreover, he hasn’t shied away from speaking on the increase in being a part of the brand.
The twice-a-year increase has become something expected by customers over the past years as common practice. When asked about the increase’s reasoning, Blondiaux shared with WWD that “We usually revise our prices twice a year. That’s what we’ve always done and will continue to do.”
In 2022, CHANEL maintained the double-digit revenue growth it has accustomed to, even with the closure of stores in Russia and China. However, when looking at the numbers, research analysts for Jefferies shared that the sales uplift the brand has seen could be due to the 21-30% increase in pricing on its bags over the past couple of years versus the overall volume in sales.
The CHANEL Classic Flap is increasing in price by 12-17%, depending on size.
The New CHANEL Prices and What is Affected
The increase was steep! Steep enough that the only Classic Flap under $10,000 is the small size, with the Maxi reaching the $11,000 mark now. The Classics were hit with a 16% increase, soaring prices above $10,000 for most. The Coco Handle, CHANEL 19, and the Pearl Crush were all given a 14% increase across the board.
This was a global increase, affecting many markets. Below you can find the new, updated prices of CHANEL Bags for 2023.
|Classic Bags||New Price||Old Price||% Increase||Delta|
|CHANEL Classic Mini Square Flap Bag||$4,700||$4,200||11.9%||$500|
|CHANEL Classic Mini Rectangular Flap Bag||$4,900||$4,400||11.36%||$500|
|CHANEL Classic Small Flap Bag||$9,600||$8,200||17%||$1,400|
|CHANEL Classic Medium Flap Bag||$10,200||$8,800||16%||$1,400|
|CHANEL Classic Jumbo Flap Bag||$11,000||$9,500||15.8%||$1,500|
|CHANEL Classic Maxi Flap Bag||$11,500||$10,000||15%||$1,500|
|CHANEL Classic Flap Mini Top Handle||$5,400||$4,800||12.5%||$600|
|CHANEL Coco Handle Mini||$5,400||$4,800||$600||12.5%|
|CHANEL Coco Handle Small||$5,900||$5,000||18%||$900|
|CHANEL Coco Handle Medium||$5,500|
This CHANEL Classic Maxi Flap with an original $3,700 price tag from 2010. This bag now costs $11,700 – over 300% price increase in 13 years.
|Reissue Bags||New Price||Old Price||% Increase||Delta|
|CHANEL Reissue Mini Bag||$4,900||$4,400||11.36%||$500|
|CHANEL Reissue Regular Bag||$10,200||$8,800||15.91%||$1,400|
|CHANEL Reissue Large Bag||$11,000||$9,500||15.79%||$1,500|
|Boy Bags||New Price||Old Price||% Increase||Delta|
|CHANEL Small Boy Flap Bag||$6,100||$5,400||12.96%||$700|
|CHANEL Medium Boy Flap Bag||$6,600||$5,900||11.86%||$700|
|CHANEL Large Boy Flap Bag||$7,000||$6,200||12.90%||$800|
|Wallet-On-Chain Bags||New Price||Old Price||% Increase||Delta|
|CHANEL Classic WOC Bag||$3,350||$2,950||13.56%||$400|
|CHANEL Boy WOC Bag||$3,425||$3,000||14.17%||$425|
|CHANEL 19/22 Bags||New Price||Old Price||% Increase||Delta|
|CHANEL 19 Small Bag||$6,400||$5,700||12.28%||$700|
|CHANEL 19 Large Bag||$6,800||$6,300||7.94%||$500|
|CHANEL 19 Maxi Bag||$7,500||$6,900||8.70%||$600|
Impact on the CHANEL Consumer
The price increases are partly due to CHANEL’s desire to become more exclusive. However, the rate at which these bags have increased has turned many off. Customers of the brand have a hard time stomaching paying nearly $1,000 more for the same bag overnight. Additionally, the frequency and the secrecy of the price increases have some turned off as well.
One user on our forum shared that “when Tiffany’s had a price increase, my SA let me know weeks in advance. I feel like CHANEL just wants us to keep spending more. I just can’t help but feel like I’m in an emotionally abusive relationship.”
While other brands also implement increases, CHANEL seems to be in a league of its own with the percentage and consistency of increases. Though the brand has worked for worldwide price equality, the new prices put these bags on par with Hermès pricing and as reported by many, out of reach.
While many feel negative about the price increase, plenty will begrudgingly pay more for the bags they have been eying and others won’t even bat an eye. CHANEL understands its core customer well, one they will confidently retain while reaching new luxury customers.
In-store, plenty of bags are still sold before they ever hit the shelves, letting you know that while these increases are a broadly criticized practice by the brand, it isn’t pricing out its core audience from buying CHANEL.