Is Chanel Saving its Big Price Increase for 2025?

By Maura Carlin, Editor

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Did anybody notice that Chanel only imposed one price increase on handbags in 2024? Historically, Chanel hikes prices twice annually (typically around March and September). But for the second year in a row, it quietly skipped a fall price increase.

Could it be that the higher-ups at the brand – like the Wertheimer family and CEO Leena Nair – are paying attention to public sentiment that the cost is just too high for the product? Or in the recent vernacular of Hermès’ artistic director Pierre-Alexis Dumas, Chanel bags are expensive.

Image courtesy: @thestylishfreelancer

Let’s take you back to March 2, 2023. A day that perhaps should be called the Chanel Day of Infamy. Because effective on or about that day (depending on geographic location), the price of the Chanel Medium Classic Leather Flap (aka the 11.12 and the Iconic) skyrocketed 16%, taking it into five figures. To be exact, the new cost of the most renowned Chanel bag became $10,200, nearing what is informally known as Hermès bag territory.

Image courtesy: @ericacyang_

And there was plenty of client backlash. Social media was replete with complaints about quality and comparisons to Hermès. With a Hermès Birkin 25 retailing for $10,400, and the Chanel 11.12 for $10,200, there was a lot of discussion about “which would you rather” purchase at that price point. Of course, with Hermès, part of the purchase process is about access – or lack thereof – but the discussion focused on retail price comparisons.

The impact on the Birkin Premium – the difference in value between the B25 and the 11.12 – was stark. The Birkin Premium dropped to single digits – 2% – from 15% in 2022.

Image courtesy: @freyakillin

Image courtesy: @freyakillin

This year (2024) also dropped significant price increases for both brands. For starters, in the early days of January 2024, Hermès raised its handbag prices between 3.7% and 9.6%, depending on the model. The B25 in Togo was hardest hit, going up 9.6% to $11,400. As you might suspect, the Birkin premium grew, although the rise was short-lived.

In late March 2024, Chanel spiked its bag prices in a general range of five to eight percent. The 11.12 price rose 6%, bringing the cost to $10,800. Once again, luxury bag fans pontificated over whether a $600 price difference made Chanel worthwhile, even as the Birkin Premium dipped back into single digits. And, they wondered whether the price would go even higher.

Image courtesy: @allchloerose

When Chanel announced its 2023 annual financial results in May 2024, Chanel CFO Philippe Blondieux affirmed that the Maison would stick to its bi-annual price hikes. A second 2024 price increase was expected, reflecting inflation in raw material costs and further worldwide price harmonization goals.

Except Chanel didn’t raise prices again this year. Beyond negative customer reaction to the March 2024 increase, Chanel was embroiled in a bit of intrigue. Mere days after the financial results were released, Chanel’s then Creative Director Virginie Viard abruptly walked out (or some say was fired). Did this delay the intended price changes? Possibly. Or was it because Chanel realized that already lagging consumer demand would not tolerate another price hike? Maybe.

Image courtesy: @emilycanham

As we head into 2025, Chanel’s future remains a bit of a question. Yes, the Maison Coco built will survive, but where will it go creatively? Following six months without a head designer or creative director – and a whole lot of speculation and campaigning for the role – Chanel announced that Matthieu Blazy (formerly of Bottega Veneta) would be taking the helm as Chanel’s Creative Director. Blazy represents a younger generation and, despite his success at Bottega Veneta, is a lesser-known designer. His first collection is expected in October 2025.

But, until then, we will be clutching our pearls wondering whether Chanel will keep its classic bag prices stable? Or will they skyrocket yet again in 2025? Stay tuned for the next round of “as the prices change . . .”

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