Chanel is at it again, in a matter of hours there will be a price increase on their already exorbitantly priced bags. There is also little to show in terms of where the price increase is going towards, I mean seriously? How can Chanel justify these constant increases in prices where quality is being compromised by mass production (Facebook groups are littered with examples of poor quality and craftsmanship), not to mention lack (or absence) of customer service.
The price increase of a whopping 10%-15% is rumoured to affect the US and European markets, and while Australian prices have historically been the most expensive in the world, it appears we will be hit too but the actual percentage increase is not yet confirmed. We’re also seeing a rise in panic buying before the July cut off date with girls rushing out to purchase a bag before they are priced out forever.
Bags that have been affected by the price increase will be limited to Classic Flaps, Boys, Chanel 19 and the Reissue. All of these bags are highly sought after and are considered Chanel ‘staples’.
Apparently, the Coco Handle and Chanel Trendy are being spared from a price increase, perhaps Chanel has a heart after all.
Here is what PurseBop are saying are the estimated price increases will be for the US and Europe respectively:
We are now convinced more than ever that regular price increases by the designer brands is a marketing ploy to push people into making a decision to buy the bag. We justify the purchase by saying to ourselves
‘If I don’t buy it now, then I will have to pay more later!’ or ‘If I don’t buy it now, when will I ever buy it?’
These large corporations know exactly what drives consumers to buy, because there’s only so much you can blame on ‘inflation’, cost of materials or ‘price alignment / corrections’, right?
Personally, I can no longer justify the prices, and while I do love Chanel I thankfully have enough Chanel bags to last a lifetime and I was ‘lucky’ enough to do this in the last five years. I remember back to when I purchased my Chanel Jumbo from Bondi Junction in 2016, and the price was roughly $7,800 AUD. It is now valued at $11,780 AUD before this latest price increase.
And who said designer bags are not an investment?
However with all these price increases, if I were to buy pieces from the boutique, I would probably redirect my spending towards accessories because that may be all that I can afford now, and I’m not ashamed to admit that.
People are saying that Chanel is aspiring to Hermès league where customers will have to pre-spend an amount that will allow them to then purchase the classic bags. This approach would technically increase demand i.e. Chanel will choose who is eligible for a classic bag, while also limiting it to the very few who can afford it. So hang on, I have to pay upwards of $10,000 Australian Dollars just to buy myself a classic bag, on top of required pre-spending? Are there better ways to spend your hard earned money? More on that in the next blog.
The resale market has also historically benefited from these increases, often raising the price which can hurt those who are looking to buy more sustainably, and within their budget.
So it really does SUCK, albeit first world / ‘rich person problem’ type of suck.
With all that said, demand currently outstrips supply and while we huff and puff over the price increase, every year there will be people who will stretch themselves to buy the latest and greatest aka #FOMO. What do you make of this? Will you be buying new from the boutique or sticking to pre-loved bags in future?
Also if you enjoyed this article, read our reaction to Chanel’s 2020 price increase which frankly feels like yesterday.