Earlier This Week:
Chanel is Likely to Increase Prices in Europe
Price of Chanel Mini Soars 27.4%
Up, up go Chanel’s handbag prices. As predicted, the French luxury maison is enacting a global price hike. At some point, we expected a price rise in Europe, where prices lagged behind those in the United States (read: Chanel is Likely to Increase Prices in Europe). Until then, it was sometimes lucrative for Americans to purchase abroad. Nevertheless, the magnitude of the latest European price hike is astounding.
As we have reported, in the last several years, Chanel has adopted the business practice of price harmonization. This means that Chanel continually aspires for the purchase price of a bag like the classic to be relatively the same whether you are shopping in Europe, the United States or Asia. Of course, perfect harmonization is impossible given currency fluctuation, VAT refunds, duties, tariffs etc. But, it is the goal.
Just days ago, we reported a European price increase effective May 11 on the square mini, based on a reputable reader’s experience at the Chanel boutique in Stockholm, Sweden. For that mini, the price hike was a whopping 27.4%.
The new European prices (in euros) demonstrate an increase of 14-25%. In fact, Classics and 2.55s in the medium, jumbo and maxi sizes rose 14.5-17%. Prices on minis and the small size jumped 17-25%. We are in process of updating the complete price list for you here.
Chanel Price Increase in the US
Now, news comes of a nearly simultaneous increase in the United States, albeit at a somewhat different level. Sources say the range will be 3-16% with classics up 12%, and mini sizes up 16%.
Recall that it was just six months ago that Chanel enacted a price hike on all classics, including all Boy bags. At that time, the increases were relatively mild – under four percent (4%) in the United States, and under ten percent (10%) in Europe and the UK – and many sighed with relief (read: Here’s How Much Chanel Prices are Rising).
Bolstering the suspicions of an impending price change is the fact that handbag prices mysteriously disappeared from the U.S Chanel website and app around May 8. The site currently says prices are available upon request.
Handbag Math
So, with this in mind – let’s do a little hypothetical handbag math. See what happens when Classic prices rise 12% and Minis 16% in U.S. dollars. We are leaving the “actual” new prices blank in the chart below and will fill in as numbers become available. Please come back to check for updates.
| Classic Flap Size | Current Price (USD) | Estimated Price Increase @12% (USD) | Price as of 25 May (USD) |
| Small Classic Flap | $5,200 | $5,824 | $5,800 |
| Medium Classic Flap | $5,800 | $6,496 | $6,500 |
| Jumbo Classic Flap | $6,400 | $7,168 | $7,100 |
| Maxi Classic Flap | $6,900 | $7,728 | $7,700 |
| Classic Flap Size | Current Price (USD) | Estimated Price Increase @12% (USD) | Price as of 25 May (USD) |
| Small Classic Flap | $5,200 | $5,824 | $5,800 |
| Medium Classic Flap | $5,800 | $6,496 | $6,500 |
| Jumbo Classic Flap | $6,400 | $7,168 | $7,100 |
| Maxi Classic Flap | $6,900 | $7,728 | $7,700 |
| Mini Classic Flap Styles | Current Price (USD) | Estimated Price Increase @16% (USD) | Price as of 25 May (USD) |
| Mini Classic Flap (Square) | $3,200 | $3,712 | N/A |
| Mini Classic Flap (Rectangular) | $3,500 | $4,060 | $3,800 |
| Mini Classic Flap Styles | Current Price (USD) | Estimated Price Increase @16% (USD) | Price as of 25 May (USD) |
| Mini Classic Flap (Square) | $3,200 | $3,712 | N/A |
| Mini Classic Flap (Rectangular) | $3,500 | $4,060 | $3,800 |
If we assume that Chanel’s ultimate goal remains international price harmonization, then we may expect Australian prices to increase considerably. Prices in Asia are presently higher than elsewhere and thus any increase likely will be smaller.
We’ll keep you updated, please check back for updates.
Love PurseBop
XO
Updated: May 19th, 2020
Comments