The dreaded Chanel price increase is coming stateside in a matter of days. We just received confirmation of pricing and as suspected it’s not good but not nearly as bad as the price hikes experienced in other countries.
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Many classic US Chanel bag prices will increase between 5% and 12% on May 25. Other global prices have increased an incredible 17% to 15%.
Price hikes appear to relate to currency values in a specific country. Australia is likely to be the hardest-hit when it comes to price adjustments. Asia and the Middle East have also been susceptible to considerable currency-related shifts.
Raising prices during a global pandemic seems counterintuitive but the initiative is most logically an attempt to maintain worldwide inventory levels. As economies opened in Asia and Europe, images of throngs of desperate Chanel customers have been swarming social media.
The fundamental truth is more likely raising prices to reach revenue targets. Why would Chanel allow a pandemic to get in the way of meeting earnings projections?
Many longtime Chanel customers have voiced disgust in the timing of this price hike and have stated that they will not be adding to their current Chanel collections. A classic Chanel Maxi will now only be about $2000 than a 25cm Birkin ($9850 in Swift). For further comparison, a Cartier Love bracelet is $1400 less than a Maxi Chanel bag.
For now, there are plenty of alternative financial allocations that can be made in the substitution of a new Chanel bag. Vacation and fine jewelry, seem like a more satisfying purchase. What do you think?
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