The annual Chanel price increases – and how much more we’ll need to save for the Classic Medium Flap Bag
From Flap bags to the Little Black Dress, Chanel is one of the most coveted, and desirable luxury fashion houses worldwide. The brand has a long legacy dating back over 100 years. Chanel’s pieces are instantly recognisable. To wear an item of clothing, or accessory that is engraved with an interlocking C logo symbolises exclusivity, allure and rich heritage.
Since the brand’s humble beginnings, Chanel’s offerings have only increased in their price, demand and exclusivity. It’s not uncommon for brands to increase their prices each year. We’re practically in the middle of a luxury price boom as Chanel’s products have seen not one, but three price hikes in the past year.
But, why does Chanel keep increasing their prices?
Here, we’ll go through some of the factors that contribute to price spikes, and take a look into one of the products that has been subject to a 35% price increase in the past year alone – The Classic Medium Flap Bag
The Classic Medium Flap Bag
Today, the Classic Flap Bag is considered one of the most iconic, and important, accessories in the fashion world – and its signature flap top is instantly recognisable. The success of the Classic Flap Bag largely lies in its traditional design that is constantly reimagined season, after season.
The Chanel Classic Flap bags are a part of a timeless collection. The style is compromised of two flaps; one on the outside, and one on the inner of the bag.
Every single one of Chanel’s handbags is made in France and Italy, by highly skilled craftsmen. The price of a Chanel bag not only reflects its sense of exclusivity but, also the values of the brand. When you buy a Classic Flap, it brings along with it renowned expertise and French design, a commitment to preserve skills and craftsmanship, and guaranteed use of high-quality raw materials.
Infographic – Chanel prices over the years
See our infographic below for the price development of Chanel bags (especially the Classic Flaps) over the years.
Chanel’s Classic Medium Flap Bag Price Increases
Pretty much every brand has to slightly increase their prices each year, this is to reflect the rising cost of living and business costs as well as inflation.
However, it seems that this year, Chanel has been in the limelight for multiple major price hike’s, lumping thousands of extra dollars on the cost of their signature quilted items. – the last one seeing the Classic Medium Flap Bag rise in price by 12.8%.
The coveted accessory was actually first sold for $250. That’s around $2,506 today – can you imagine scoring a Chanel piece for that price? It’d seem way too good to be true.
Here’s a low down of the Classic Flap prices over the years.
So, what are some of the causes for these insane spikes? Other than COVID-19 having a major impact on the retail market, there are other reasons for rising prices.
Typically, luxury brands increase their prices to help their products retain their value. Chanel is an extremely desirable brand, and they want to maintain their exclusive allure. With that, means increasing their prices – unfortunately, this means that they’re purposefully making their bags unaffordable to most, that’s what maintains the appeal.
Chanel could be strategically increasing their prices at certain points of the year. They know that whenever they hike their prices, they’ll get a surge in sales. This is because their products are instantly more exclusive, and the price today could be much more tomorrow. Brands will only increase their prices of products that are consistently in high-demand – The Classic Medium Flap taking pride at the top of the list.
Chanel’s price increase – impact on the resale market.
With each price increase, Chanel try to push their name away from the retail market. However, along with the price hikes, pre-bought Chanel Classic Flap’s appreciate in value too.
Ultimately, it could take years to establish the true value of a used Chanel handbag that is on the luxury resale market, as impacted by the most recent price booms. The day’s of finding a Classic Flap Bag that is being sold on the secondary market for much less than retail seem long over as long as the bags are in reasonable condition. Chanel’s bags are known to make back the amount they were at real retail price – and more. As the brand is still so exclusive (you can’t purchase a handbag off of their website for example), this is unlikely to change. If anything, Chanel’s price increases actually encourage sales.
Chanel Classic Flap owners know that others are desperate to get their hands on the limited supply available, and will pay whatever cost.
That’s a wrap on the price increase of the Classic Flap.
Chanel is one of the most iconic luxury brands on the market, and they come with a heavy price tag to match. The Classic Medium Flap Bag has seen an increase of 35% in the past year alone. Chanel can justify this as it’s one of the most desired accessories in their product library.
They continue to increase their prices numerous times a year, and there are no signs of them slowing down – but, why should they? Along with each price, the increase comes a spike in demand for their products. It demonstrates to the customer that they are an extremely exclusive label – Who knows how much, or how soon, the next increase could be?
Future price increases in 2022?
As of the time of this article, we’re 10 days into January and there’s already a rumoured price increase at the end of the month, that we’ve covered in this article about Chanel’s 22P collection. Fortunately, the increase will not affect the Classic Flaps, but other bags such as the Coco Handle, Boy Bag, Chanel19 as well as SLGs. However, if we were to guess, we would say that Chanel will probably continue with the price increases in 2022, probably not as much as in 2021 where they increased the prices by 35%, but we predict 2 price increases for about 5-10% each.
As with everything with Chanel, we just have to fasten our seatbelts and enjoy the ride (or get out and look at the pre-loved market instead).
How do you feel about all the price increases? Are you still buying Chanel in the boutique?
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