Chanel Is Striving “To Be Part Of The Hermes World” With Price Hike

Chanel is striving for a higher level of clientele with its fourth price increase since 2019.

According to a spokeswoman, the luxury brand has increased its prices due to unspecified exchange-rate fluctuations, changes in production costs, and to ensure its handbags cost roughly the same around the world. Luxury executives beg to differ and consider this a corporate strategy.

According to Bloomberg, a small Chanel classic flap bag has increased by 60% to $8,200. The large version of the handbag known as the 2.55 now costs $9,500 in the United States.

According to the publication, a medium-sized Chanel flag bag in France now costs 7,800 euros ($8,800), which is 100 euros less than a Birkin 30 in Togo calfskin by Hermes.

It appears that the luxury brand is striving “to be part of the Hermes world and less of the Vuitton and Gucci world,” according to Charles Gorra, chief executive officer of Rebag, which sells pre-owned luxury purses. The brand is trying to go from luxury to upscale.

Not only is the luxury brand increasing its prices, but they are also limiting the number of handbags that can be purchased at one time. In Paris, customers are only allowed to buy one bag at a time and must wait two months to buy another.

Did you see this coming?