Chanel raises handbag prices by 29% in run-up to Christmas
French luxury group Chanel has hiked prices of some of its most popular handbags at a time when strong consumer demand and low stocks in the run-up to the festive shopping season are boosting their exclusivity.
The price of Chanel's Small Classic handbag has gone up by 16% to 7,300 euros since the end of September. The hike, first reported by French news channel BFM TV, was confirmed by Reuters using the Internet Archive, a repository of past web pages.
The price of another popular handbag, the quilted leather 2.55 with a golden chain, was €7,800 on Chanel's website on Thursday compared with €6,050 in December 2020, an increase of nearly 30%, the Reuters analysis showed.
Reported by Reuters, a spokesman for the group said in an email that the price increase "only concerns our iconic models, namely the Timeless Classic and the 2.55."
The spokesman added that Chanel regularly adjust its prices like other major luxury brands, to take into account changes in its production costs and raw material prices as well as exchange rate fluctuations.
Privately-owned Chanel, one of the biggest brands in the €280 billion global luxury industry, has weathered the effects of the Covid-19 pandemic better than most other retailers and has raised prices several times to boost their profit margins.
Sales at Chanel fell 17.6% last year, but the core profit margin stood at around 20%, according to analysts, making it one of the most profitable companies in the sector. The company said in June that it expects revenues to increase by double digits this year compared with 2019, pre-pandemic levels.