Chanel is upping the price for some of its signature bag model by 10 to 15 percent. This marks the luxury brand’s third round of price adjustments since the beginning of the pandemic. The price increases took effect at the beginning of this month. The Chanel Classic Maxi Flap is one of the bags that’s now 15 percent more expensive.
Increasing prices is often a way for luxury brands to make up for profits lost during periods of economic downturn. Chanel was one of the brand’s that actually rose their prices circa the Great Recession. According to Business of Fashion, Luxury fashion brand prices have risen over twice the rate of inflations and brands usually raise prices twice per year based on materials and labor cost.
Chanel was actually one of the luxury brands that actually saw a strong rebound after the pandemic. Their revenues did fall 18 percent, but sales returned to growth this year.