Chanel is increasing the prices of their handbags. Again. They know they can, and the very many who continue to buy are encouraging, rather than deterring the hike
For many women, the dearer Chanel bags are, the more desirable owning one is. It has to be, or it’s hard to explain the bags’ puzzlingly massive appeal. The price increases are not attributed to inflationary pressures, but are, according to a spokesperson, cited by Bloomberg recently, “in response to unspecified exchange-rate fluctuations, changes in production costs and to ensure its handbags cost roughly the same around the world”. This is not the first time, nor the second, in the past two years that Chanel has upped its prices for their bags. As stated in the Bloomberg piece, prices for the classic styles have been raised by “almost two-thirds since the end of 2019”. That, to us, is staggering. But our—and kindred folks’—reaction to the price hike matters not to Chanel who seems to only want to target those for whom prices matter not. Their latest price increase is a staggering fourth in these past two years. That averages a rise of twice a year.
One marcom executive told us, “This is so ridiculous. Pricing a Chanel bag closer to an Hermès does not make it an Hermès!” But for many women, especially the young, a Chanel bag is the most covetable, and, as a gift, is considered a measurement of the depth of the love shown by the romantic partner. One twentysomething we know, reacting to the news of Chanel jacking up the prices of their bags, said to us, “It’ll not change anything for me. I will still buy. And I want no other bag. And I don’t expect my boyfriend to buy anything but Chanel for me.” Conversely, a “former lover” texted us to say, “25 years or so ago, a Classic (one standard size) with lambskin and lined in burgundy leather sold for S$3,500. That was princely. But now!!!🙀” Many observers consider Chanel’s pricing move a way to keep their bags exclusive. Even after so many are appearing in the secondhand, not to mention bootleg, market? Or, has price, more than the bag itself, become the real confidence booster?
Chanel does not make better leather bags than, say, Delvaux, the world’s oldest luxury leather goods maker. But somehow the very mention of Chanel sends eyes quite lit up. To us, Chanel bags can look frumpy, but even women dressed in Balenciaga-ish oversized togs would carry the recognisable bag, not because they are especially on-trend, but because the double-C lock (never seen in the original that Coco Chanel designed) is the ultimate status symbol. You almost never witness a woman carry her Chanel 2.55 or whatever Flap Bag there are (let’s not get into the taxonomy) with the outside facing inward, against her body—the logo totally blocked. That Chanel did not start (or have a long history) in leather goods, as Hermès primarily did, is no disincentive to the women (and men) so desirous of a Chanel bag. Coco Chanel created her first bag for practical need, rather than materialistic demand: so that, with the shoulder strap, women can keep their hands free while carrying one. These days, women want more than their hands free. And they don’t mind paying for whatever else is associated with carrying a Chanel bag. And the bag maker knows. Only too well.
Photo: Zhao Xiangji