A Chanel handbag is one of the most coveted items. It’s an item a lot of people want in their wardrobes. However, it’s also a staple item that is becoming less and less readily available due to the production numbers which are becoming less and less each year. This unfortunately does leave Chanel bags vulnerable to steep price increases year upon year. Although Chanel is not at Hermès price levels yet, it certainly looks like we could be heading that way, if 2022’s price increase is anything to go by.
Why does Chanel increase the price of their handbags?
The increase of designer items is not a phenomenon that is only associated with Chanel. In fact, many luxury labels have decided to up their prices, especially during the pandemic, where luxury stores had to close for a period of time. All luxury bags have fallen victim to a rate of inflation. Although unconfirmed, the reason as to why Chanel hike up their prices every so often is because they have to keep up with factors like labour and material costs.
Chanel’s first price hike of 2022
Even though we’re only in the second month of the year, Chanel has already increased their price once this year. The affected bag designs are the Chanel Coco handle, Business Affinity and the Boy bag. Each of these bags will see an increase of 8-12%, which is huge for the first Chanel increase of the year.
Chanel’s price increase over the years
To truly understand the reasons behind the now-expected Chanel price increase, we need to look at its history. So, here’s a dive into the last few years of Chanel bag increases.
2019 – 2020
You may remember that Chanel rented out part of the Grand Palais in Paris to show their spring/summer 2021 fashion collections in late 2019. Obviously, this would’ve cost the brand a lot of money to put on. Chanel relies upon the Asia-Pacific area of the world to make them money. So when the Covid-19 pandemic ripped through those areas in late 2019, early 2020, this caused chaos for the brand. Physical Chanel stores had to close, which left them relying solely on online revenue. This resulted in a huge loss as, after all, one of the reasons people buy from Chanel is because of the in-store experience.
Throughout 2020 a lot of us worked from home. That wasn’t the same for craftsmen and material suppliers across France and Italy, because after all, how could they possibly do their job from home? This meant the supply was lessened, and therefore there was more demand for Chanel’s bags. Enter, price increase number one of this year.
As businesses and stores were allowed to reopen mid-2020, Chanel opened their stores too. But to a different type of person. Chanel was used to businessmen and international flyers coming across the globe to shop, and also stopping by in their stores. Travel restrictions meant that this couldn’t be the case. Most of Chanel’s stores are located in tourist areas, which causes a bit of an issue when there are no tourists. As a result, Chanel’s revenue began to decline, which led to price increase number two.
2021 – Present day
Like many businesses, Chanel is still trying to recover from the effects of the pandemic. With the fear of new variants hitting some places harder than others, and lockdowns in some areas, it’s clear that there’s still a long way to go. 2021 saw a whopping four price increases throughout the year, and so far in 2022, we’ve had one. We have no idea what Chanel has in store for the later months of 2022. But one thing we can know for sure is that there will be many more price increases this year.
How often does Chanel increase the price of their bags?
If you’re looking for a definite time frame as to when Chanel’s bags will increase in price, it doesn’t happen in the same month every year. As we’ve just mentioned, in 2021 the price rose in February, July and November. The first price hike of 2022 has come in January, so one of the things about the price increase is that you never know when it is coming.
What does the future of Chanel bags look like?
Even though Chanel is increasing the price of their bags year upon year, their items are still extremely sought after and are seen as a timeless luxury addition to a buyer’s wardrobe. From this alone, you can probably see where we are going with this. The future of Chanel bags is likely to remain pretty bright. The price increase of the Chanel bag is only going to add to the exclusivity of the brand. Chanel doesn’t quite have the mystery of Hermès yet, but it’s certainly looking like they want to get that way.
Has the price increase had an impact on pre-loved items?
With the recent price increase, it’s become clear that Chanel is trying to do what it can to take back control of the pre-loved market. They’ve only just recently replaced their serial numbers and have added an authenticity card with an NFC-compatible chip. This makes it easier for Chanel to track the origin of the bag and will inevitably lower the amount of certified Chanel resellers.
Ultimately, the price increase will have an impact on pre-loved Chanel bags as they are only getting more and more exclusive. It’s also important to note that finding a Chanel bag in good condition on the resale market is certainly not an easy task to do. Chanel bags that are on the pre-loved market are known to retain their value. If you have got a Chanel bag to sell, it could even make you profit, if in the right condition with the relevant paperwork. Some may even say the price increase is partly due to the demand for Chanel handbags on the second-hand market. Chanel bags always do extremely well on the resale market, and this remains unlikely to change, especially if Chanel continues to hike up their prices in the same way they did in 2021.
It’s likely the price of Chanel bags will only go up
It’s good news if you’re looking to sell your Chanel bag, but it’s not so much good news if you’re looking to buy one. It is likely that the price of Chanel bags will only continue to rise, perhaps until they reach the rate of the Hermès Birkin. It’s impossible to predict how much these bags will rise, but if you can get your hands on one right now, then it’s probably worth doing so.