Chanel Bag Price Increase – Is A Chanel Bag Still Worth Buying?

That Chanel bag you’ve long coveted as your own will now cost more. As avid lovers of the iconic luxury house will know, Chanel made headlines in 2020 for increasing prices of its favourite handbag styles — twice. Amid the Covid-19 pandemic, there was pandemonium as shoppers in countries such as South Korea and China queued outside Chanel boutiques to snap up the bags of their choice before the price hikes went into effect.

In January 2021, Chanel confirmed rumours that they were raising their prices again in the United States. If you’ve long dreamed of owning a Chanel bag, what does this mean for you? Is a Chanel bag still worth the splurge in 2021? We break down the Chanel bag price hikes over the past year.

How significant is the Chanel price increase?

We’ve been here before. Luxury brands are known to increase their prices, sometimes even several times a year. Other than Chanel, luxury houses like Prada and Louis Vuitton also followed suit in 2020.

What was notable about the Chanel price hikes in May 2020, however, was that the new prices were 5 to 17 per cent higher (and up to 25 per cent higher in parts of Asia). According to Business of Fashion, previous price hikes usually topped 10 per cent, which made this increase much harder to swallow.

This was followed in October 2020 by another increase of about 5 per cent — notably in Britain, China, Hong Kong, Japan and South Korea — and a subsequent hike of about 4 to 7 per cent in January 2021.

This might not seem significant at first glance. But when the prices of a Chanel handbag start as high as they do, this still translates to an increase of S$300 to S$500 for the affected items.

Why did Chanel raise the prices of its handbags?

As mentioned, price hikes are common for luxury brands. Chanel is also not alone in implementing price hikes as a strategy.

While exceptional craftsmanship and fine materials factor into luxury-level pricing, consumer perception matters too. This is especially the case for Chanel handbags, which are seen as status symbols that evoke desire and demand for their quality and exclusivity. Chanel’s price hikes could be responding to a surge in demand for its iconic quilted bags.

There is also heavy speculation that the price hikes were a way for Chanel to recoup its losses from Covid-19 store closures, supply chain disruptions, and conservative spending worldwide during the pandemic.

Chanel, however, has explained this series of price increases as “the consequence of recent significant exchange rate fluctuations between the euro and certain local currencies”, without giving further details.

Read More: Brand Spotlight: Chanel

Chanel Bag Price Comparison

Let’s look at the price fluctuations for the most popular Chanel handbags over the past year.

Chanel Classic Flap Bag Price Increase 

Designed by Karl Lagerfeld for Chanel in the 1980s, the Classic Flap Bag reimagined the original 2.55 with an interlocking CC clasp and a metal chain interlaced with leather.

Style

March 2023 (S$)

March 2021 (S$)

May 2020 (S$)

Chanel Small Classic Handbag

$13960

$9,340

$8,950

Chanel Classic Handbag

$14560

$10,270

$9,850

Chanel Large Classic Handbag

$14679

$11,210

$10,740

Chanel Maxi Classic Handbag

Price on Request

$12,060

$11,560

Chanel Classic Flap Bag Price comparison

Chanel Reissue 2.55 Price Increase

Fifty years since Gabrielle ‘Coco’ Chanel launched the original 2.55 bag, Karl Lagerfeld breathed new life into this iconic handbag with the Reissue series.

StyleMarch 2023 (S$)March 2021 (S$)May 2020 (S$)Chanel Reissue 2.55 Bag$14560$10,270$9,850Chanel Reissue Large 2.55 Bag$14679 $11,210$10,740Chanel Reissue Maxi 2.55 BagPrice on request$12,060$11,560Chanel Reissue 2.55 Price Comparison

Boy Chanel Bag Price Increase

The Boy Chanel bag first made waves with its sleek silhouette as part of Chanel’s Fall/Winter collection in 2011. It pays homage to the great love of Gabrielle Chanel’s life, Boy Capel, and adds a dose of boyish spunk to any outfit.

StyleMarch 2023(S$)March 2021 (S$)May 2020 (S$)Small Boy Chanel Handbag$8,630$7,300$7,000Boy Chanel Handbag$9,530$7,980$7,650Large Boy Chanel Handbag$10,060$8,460$8,100Boy Chanel Bag Price Comparison

Will Chanel bag prices go down in 2021?

However,

It’s unlikely. Chanel historically does not mark down the prices of their bags to control their value. In recent years, the prices of Chanel handbags have also been steadily rising to maintain their exclusivity amid an increase in demand, especially in key markets in Asia.However, according to luxury goods analyst Flavio Cereda , it’s equally unlikely that Chanel will embark on such drastic price hikes beyond 2020. International travel is also expected to return in the second half of 2021, which would make further price increases unsustainable since shoppers will be able to buy Chanel bags in other markets at cheaper prices.

Is a Chanel bag still worth the price?

Now that we’ve detailed the trends in price increases for Chanel handbags, the question remains: Should you splurge on that Chanel bag you’ve been eyeing?

It depends. If you’re thinking of buying a Chanel bag as an investment, it might not pay off as much as you think it does. While some collectable handbags appreciate over time, this is the exception rather than the norm.

It might also not be a good idea to buy it as speculation for the next big price hike so you can sell it, as Chanel is tight-lipped about when the next price increase might be. This shouldn’t be your main reason for buying a Chanel handbag.

Instead, if you’d like to indulge in a bit of luxury for yourself and you can afford it, then go ahead and treat yourself!

Read more: How to Invest in the Right Bag

Alternatives to buying a brand new Chanel bag

At Style Theory, we love our Chanel handbags! But we’re also big on circular fashion. As Southeast Asia’s largest circular fashion platform, we want to enable our community of fashion lovers to buy luxury, while still being sustainable.

Here’s how you can enjoy having a Chanel Bag as your arm candy, minus the new and hefty price tag:

Rent a Chanel bag freely

If you’re new to Chanel or haven’t owned a luxury bag before, you might be wondering which Chanel bag you should get. From its timeless black Chanel flap bag to its limited-edition colourways, the sheer number of styles can be overwhelming. Browsing through a brick-and-mortar Chanel store might not give you enough time to decide on which one you want.

Renting your dream Chanel bag first can let you have a taste of what it’s like before you commit to a purchase. Once you pick a Chanel bag to rent, you’ll get to spend three months with it and test out its suitability with your existing wardrobe. What could be more ideal? Start browsing our collection of Chanel styles here.

Buy a preloved Chanel bag

What’s better than buying a Chanel bag at full price? Buying one at a discount! Buying a secondhand Chanel bag is definitely sustainable option (both environmentally and financially!), but you might be wary of being duped by fakes.

All designer bags on Style Theory go through a rigorous authentication and inspection process before they’re accepted on our platform. This way, you can shop with peace of mind knowing that the secondhand Chanel bag you’ve got your eye on is 100% authentic and worth the price! Browse our collection of preloved Chanel bags for sale at up to 85% off their retail price here.

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