Why is Chanel Increasing Prices?
According to Philippe Blondiaux, Channels chief financial officer, the 2023 Chanel price increase is “to account for currency fluctuations and inflation”. Although inflation is affecting everyone through rising cost of materials and labor in 2023, this does not explain the extremity of the increasing prices or the frequency on which they have occurred over the past couple of years. For reference, the Chanel medium classic boy bag has increased in price 60% since 2019!
So why then is Chanel continuing to increase prices? A simple answer is because they can. As prices rise, the bags become more exclusive and as supply dwindles, demand is driven even higher. This strategy of creating exclusivity to increase value can be seen in other initiatives of the brand such as the brand's two classic bags per year quota established in 2022. This quota restricts customers from purchasing more than two classic Chanel bags in a fiscal year.
The good news is that the price increase works both ways! When retail prices increase, resale value of previously loved bags also skyrockets. In fact, a Chanel bag purchased new and kept in good condition is likely worth more now in the resale market. Now is the perfect time to invest as Chanel will likely see another price increase before the end of the year and the brand has not ruled out another price increase in 2023.
What's the 2023 Price Increase on your Favorite Chanel bag?
Chanel Classic Medium Flap Bag
From $8,800 to $10,200
Chanel Small Boy Bag
From $5,400 to $6,100
Chanel Classic Wallet on Chain
From $2,950 to $3,350