Breaking News: Global Chanel Price Increase 2024
As the summer travel season approaches, American Chanel enthusiasts may be wondering whether it is less expensive to purchase that Classic Flap at home or abroad. Last month’s Chanel price hikes affected the bags in both locales, taking the Medium Classic Flap to a heart-stopping price of over €10k in Europe, and pushing it further above $10,000 in the United States. With that in mind, let’s see if, where, and how there are deals to be had when purchasing overseas.
Image courtesy: @meghandono
Yet, beyond retail therapy, visiting Paris is always a good idea – whether shopping or not. It’s a magical city full of culture, history, and divine food… If that’s your thing, then go, shopping bargains or not – the City of Light will always appeal. But if finding a deal is your goal, let’s examine the situation.
Image courtesy: @sarah.mss
A Time of Savings in Paris
There was a time when American shoppers could enjoy substantial savings on luxury goods in Paris. However, as Chanel moved towards global price harmonization, since about 2015, the opportunity for savings has declined. Except for one very notable exception – the Summer of 2022 when the US dollar was particularly strong against the euro.
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Buying a Chanel Classic Flap at the Flagship in Paris and the Savings
But that time period was fairly short-lived and the situation is different now. In August 2022, amid the American shopping spree in Paris and other European cities, Chanel raised prices in Europe only to compensate for currency fluctuations. As a result, the euro and dollar prices were closer to parity. Later price hikes on the Classic Flap (March 2023 and March 2024) were imposed globally, leaving prices relatively comparable. In addition, the dollar is no longer as strong against the euro, meaning that currency exchanges provide little advantage.
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Chanel Handbag Math Calculations
So can Americans save money by purchasing Chanel bags in Paris now? As you’ll see below, it depends mostly on whether your US purchases are in a state that imposes sales tax. The potential savings essentially are the amount of those local charges.
Prices are the same in the United States and Europe for the Classic Flap.
Image courtesy: Chanel
Let’s begin with the timeless Medium Chanel Classic Flap (aka the 11.12 in the recent ad campaign). The most recent price hike took that bag to €10,300 in the EU and to $10,800 in the United States. Using the April 4 exchange rate of €1=$1.08, the EU price is equivalent to $11,162. At first glance, it appears the bag is more expensive in Europe. But we’re not done yet.
Read also: Where Can You Get a Chanel Bargain?
Are Chanel Savings Still Possible in Paris?
Factoring in the VAT refund for the same bag changes the narrative slightly. Despite the initial sticker shock when exchanged into dollars, the final calculations offer luxury shoppers a little bit of a break.
An American shopper in Paris could typically receive a refund of the VAT – assume around 10 % of the purchase price. Importantly, American travelers should anticipate US duty charges, which can offset the benefit of the VAT refund. The math is as follows:
Medium Classic Flap
Price in the US: $10,800
Price in Europe: €10,300
Total cost in US: $10,800 + $1,080 (sales tax approx 10%) = $11,880
Total cost in Europe: $11,162 (incl. VAT refund & US duty)
Savings: $11,880 – $11,162 = $718 or 6%
Image courtesy: @clairechanelle
Let’s take a look at the other Chanel Classic Flap bag sizes:
Small Classic Flap
Price in the US: $10,400
Price in Europe: €9,900
Total cost in US: $10,400 + $1,040 (sales tax approx 10%) = $11,440
Total cost in Europe: $10,731 (incl. VAT refund & US duty)
Savings: $11,440 – $10,731 = $709
Image courtesy: @alpa.rama
Jumbo Classic Flap
Price in the US: $11,700
Price in Europe: €11,100
Total cost in US: $11,700 + $1,170 (sales tax approx 10%) = $12,870
Total cost in Europe: $12,031 (incl. VAT refund & US duty)
Savings: $12,870 – $12,031 = $839
Image courtesy: @alex.floyd
Maxi Classic Flap
Price in the US: $12,300
Price in Europe: €11,700
Total cost in US: $12,300 + $1,230 (sales tax approx 10%) = $13,530
Total cost in Europe: $12,682 (incl. VAT refund & US duty)
Savings: $13,530 – $12,682 = $848
The numbers are clear – as Chanel reaches closer to global price harmonization, Americans purchasing the Chanel Classic Flap in Paris can anticipate modest savings, typically around 6% across the Classic Flap collection. The savings primarily result from avoiding the US state sales tax, roughly around 10% of the purchase price. Consequently, however, Americans purchasing in states that don’t impose sales tax won’t benefit from purchasing in Europe. For them, the Classic Flap ultimately is less expensive in the United States.
Is Paris Still a Good Idea?
We happen to think Paris is always a good idea, even if not for saving money. Will the savings of roughly 6% on the Chanel flap fund the rest of your trip – like the cost of travel and accommodations? Not likely or only in part. On the other hand, it’s hard to ignore the allure of pocketing that $700-800 savings, along with memories of a shopping experience at a Chanel Paris boutique. Whether you want to pay what feels like staggeringly high prices, well, that’s a different issue.
Image courtesy: @ncl.style
So, if you’re already planning a trip to the fashion capital, treating yourself to a Chanel Classic Flap could still be a worthwhile indulgence. Just keep in mind that the days of massive savings from purchasing in Paris may be long behind us.
Are your days of shopping for Chanel in Paris over? With diminishing savings, do you still find shopping abroad justifies the trip?
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Updated: April 15th, 2024
Comments
2 Responses to “Can You Still Save Money From Buying Your Chanel Classic Flap in Paris?”
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