PRICES of Chanel handbags, including the fashion house’s signature “flap” bags, could rise again in September, a top executive said.
Chanel typically reviews handbag prices twice a year, in March and September. In March, the company applied an average 8% price increase on bags worldwide, CFO Philippe Blondiaux said in an interview ON Thursday.
A classic medium-sized flap bag currently costs €9,700 (US$10,400) in France, or about €1,900 more than 18 months ago. By comparison, a Hermes 25cm Birkin bag currently sells for around €8,000.
Chanel plans to follow its policy of applying price increases in line with input-cost inflation, while also looking at currency volatility. The fashion house aims to minimise the price gap for the same product between different regions.
“These are the two factors which will make us change our prices or not in the remainder of 2023,” Blondiaux said. The March price increases varied widely depending on the country, he added.
A combination of increased unit sales and higher prices helped the luxury house boost sales by 17% in 2022, he said, adding that price increases for its bags were in line with inflation.
Hermes usually reviews its prices annually, at the start of the year. The Kelly bag maker increased product prices on average by 7% in January. – BLOOMBERG