Chanel is hiking the prices of its products for a third time since the start of the pandemic.
The company first jacked up the prices on certain bags in May 2020 by 5 percent to 17 percent due to an increase in the cost of raw materials and fluctuation of exchange rates between the euro and certain local currencies. Later in October, it increased its rates by another 5 percent in line with other luxury brands such as Dior, Gucci and Louis Vuitton.
Now the company is looking to increase its rates by up to 15 percent starting July 1, 2021, which will be in accordance with its policy of reviewing prices worldwide twice a year. The policy will result in a 10 percent increase in the price of certain bags such as the Chanel 19 Small, while other products such as Chanel’s Classic Medium, Classic Jumbo Flap bags will cost 15 more, selling in the range of $7,800 to $8,500. The Classic Maxi will also cost 15 percent more, selling at $9,200, The Fashion Law reported.
The news of the price increase is naturally prompting many Chanel buyers to balk at the idea of having to pay more. While some customers told the Korea Times that they were no longer interested in shopping for Chanel products, many consumers lined up outside the Chanel store in Seoul early in the morning to shop for products before the new prices kicked in.
Even with the price hikes, demand for Chanel products is unlikely to abate, especially among wealthy consumers who have saved up money over the course of the last 15 months as they could not travel or socialize.
Chanel is also reportedly benefiting from the heightened demand for its products on the resale market, allowing it to further hike the prices without worrying about alienating customers.
Earlier this month, Chanel reported that it expected sales to increase by double digits in 2021 compared to 2019, thanks to growing demand in the U.S. and China.