Late last week, luxury brand Chanel announced a price increase in China and the Asia-Pacific region. This decision comes against a backdrop of slowing global demand for luxury goods.
Chanel, the famous French fashion house, recently increased the prices of its high-end products in China. The luxury brand’s labels, which highlight exchange rate variations, were also raised in Taiwan, Thailand, Malaysia, Australia and Japan.
Overall, prices rose by between 6% and 8%.
The increase comes against a backdrop of slowing demand for luxury goods worldwide, following the post-pandemic boom years.
“This is something we do on a regular basis, in line with our commitments to price harmonization,” said a brand representative. Indeed, for example, a medium-sized flap bag, which costs 80,500 yuan in China ($11,030), sells for 9,700 euros in France ($10,230).
Chanel’s price revision policy
Luxury brands are renowned for their ability to raise prices without necessarily losing customers. In recent years, however, there have been signs that customers opting for entry-level products have begun to cut back. This trend could influence the pricing policies of luxury brands in the future.
For its part, Chanel applies a policy of revising its handbag prices twice a year, in March and September, as explained by Philippe Blondiaux, the brand’s CFO. In addition, the company raises prices in line with inflation in input costs.
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