Chanel to Increase Prices by 20%

Chanel: apparently not quite exclusive enough. This is the reason behind the new price hikes which Chanel plan to introduce, to make their designs even more exclusive. While it's understandable that Chanel want to make their products exclusive and thus desirable, an extra 20% seems like a big price hike for something that is already costly.
Chanel Autumn/Winter 2010

With this new price jump, people are already beginning to complain that it's not necessary. Chanel want to eliminate their brand from becoming common - like Louis Vuitton, whose speedy bags were at a more affordable price, thus making them more accessible, but at the same time, reduced the exclusive feel of the label.

The price change will mean that Chanel hope to rival design houses such as Hermés who set the standard with regards luxury bag sales (waiting lists and jaw-dropping prices = super exclusive). Basically, if you've been saving your pennies for one of Chanel's famous bags, your going to need to continue to do so!

This seems like a strange move, when so many other design houses have begun issuing concession labels with lower price points to make their label more accessible to the people who don't have as much cash to spend (Marc by Marc Jacobs).

A sales associate for Chanel has stated:
"We don't want Chanel to become like Louis Vuitton. They are taking more of an Hermés approach, where it can take three years to get the bag you like. We want Chanel to stay a luxe item, and not be Main Street."
This seems a little bit over the top, does the average Chanel lover want to spend 2 years on a waiting list for a bag? It just seems entirely pointless when you can wander into a Chanel boutique, still pay a large wad of cash, but at least instantly have the bag that you want, and I think that Chanel will always have an exclusivity to the name.

This might make Chanel more exclusive, but on the other hand, it's quite likely to alienate some potential customers. The price increase will take place over the next month.

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1 comment :

  1. So how prevalent is Chanel in China? Many luxury brands are working the market in China where luxury car brands sell their highest models there whereas they are not even thinkable in other 1st world countries. If Chanel wants its brand truly exclusive and therefore mainly within Europe, ie NOT global, then it prob does not want to market in growing economies.


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