French luxury brand Chanel (Chanel) recently raised the price of its handbags again.
According to French media BFM TV, Chanel raised the price of the Classic series small handbag by 1,000 euros , and rose from 6,300 euros at the end of September to 7,300 euros.
Reuters' analysis shows that another Chanel 2.55 classic chain handbag also rose from 6050 euros in December 2020 to 7800 euros, with rising by nearly 30%.
"This is not surprising. Chanel must have noticed that the sales of this handbag are growing, so he took the price increase. For luxury brands, once they find that the price has become affordable, they will take the price increase to prevent themselves from becoming mediocre. is the worst thing to do for a luxury product ," explained Delphine Dion, a professor at the Essexy Business School.
Chanel A spokesperson said in an email to Reuters that the price increase of is only aimed at the brand’s iconic styles, namely the Classic series and 2.55 chain handbags. "Just like all large luxury brands, we will regularly adjust product prices based on production costs, changes in raw material prices and exchange rate fluctuations. The purpose of price adjustment is to avoid excessive differences between regions."
According to the Korea Times, currently has more than 10 million won in the price of all handbags in the Chanel Classic series of South Korea.
Starting from November 3, Chanel raised the price of Classic series small handbags by 17.8% to 10.52 million won; the price of medium handbags increased by 15.8% to 11.24 million won; and the price of large handbags increased by 15.3% to 12.1 million won.
On the Korean regional online forum, many netizens complained that Chanel must have believed that even if the price is raised, Korean consumers will still buy branded handbags. Some netizens showed that Chanel even began to limit the number of handbags each customer buys. For some popular styles, each customer can only buy one piece per year.
, Professor Lee Eun-hee, Department of Consumer Sciences, Inha University, said: "Chanel is controlling the supply of products. Now Koreans cannot buy a Chanel handbag even if they have money. The epidemic has exacerbated the supply and demand situation. In the past, consumers could buy luxury handbags through various channels, but now they can only be purchased in domestic brand stores."
She also pointed out that the luxury customer base has become more widespread. "In the past, the main customer base of luxury brands was the elderly, but Now the young consumers of the MZ generation have become the main force. They believe that buying luxury goods is an investment, so they enjoy the process of buying and owning luxury goods . In their opinion, when they need money, they can also hang luxury goods in the second-hand market for sale. So even if many MZ generations are not rich, they also enjoy luxury goods very much."
Note: The MZ generation refers to millennials and generation Z. They were born between 1985 and 2005 and are currently around 20 to 30 years old.
Some analysts said that although Chanel's sales fell by 17.6% last year, the brand's core profit margin remained at around 20%, making it one of the most profitable luxury brands. Chanel said in June this year that it expects sales to achieve double-digit growth compared to 2019 (before the epidemic).
This is Chanel's second time this year, and it is also the fourth time since the outbreak of the epidemic. For information on the previous price increase, see the historical report of "Hualizhi":
- Chanel's price increase for the third time in fifteen months, and the price of classic handbags increased by 10%~15%
- Chanel's price increase for the second time this year. Will other luxury brands follow up?
- Chanel officially confirmed: Classic handbags and small leather goods will be priced at 5-17% worldwide
Currently 1 euro is about RMB 7.39, and 1 Korean won is about RMB 0.0054
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-