CHANEL Raised Its Prices Again. Ok...And?
Chanel is keeping its tweed-covered foot on our necks with yet another price increase. As of March 1, 2023 the Small Classic will climb from $8,200 to $9,600, the Medium Classic goes fro $8,800 to $10,200, the Jumbo Classic moves from $9,500 to $11,000, and the Maxi Classic increases from $10,000 to $11,500.
This new pricing structure comes on the heels of a 9% price increase a mere seven months ago in August. Actually, since 2020 the Medium Classic Flap has gone from $5,200 to $10,200. A 96.1% price hike.
Naturally the announcement came with a lot of discourse. Was this a play to add more prestige to the Classic series? A way to compete with the likes of Hermes and Goyard? All of the above, most likely.
Is the outrage associated with these price adjustments warranted? Yes and no.
The price hike applies to the Classic bags — the iconic quilted flap bags most often associated with the brand. They are the foundation of Chanel and as such, should be pricier than the seasonal bags to align with that distinction.
On the other hand, the world of handbags is changing. Brands like Telfar and Luar are disrupting the space and are more coveted by younger audiences. The same goes for Coperni, Diesel, and the litany of styles coming from streetwear brands like Palm Angels and Kid Super.
Whether or not Chanel's price strategy adds to its allure in the world of luxury bags or further ostracizes it from cash-strapped Millennials and Gen Zers who seem indifferent to heritage brands remains to be seen.
In the meantime, consider Chanel bags the new eggs.
Its giving ::shrug::