While the whole world is going through a pandemic, certain designer handbags seem to still increase their value. Is this an investment or a necessity?
Luxury Fashion brand Chanel announced it is increasing some of their classic leather goods globally, this comes after a rise in the cost of raw materials amid Covid-19 outbreak, according to Reuters.
Chanel confirmed that it was increasing prices on selected handbags and leather goods by 5% to 17% euros globally. Bain Consultancy predicted the multi-billion market will drop by 35%. As a result of this, Chanel are seeing an unavoidable shift and are quickly responding to try protect and compensate for loss of sales during the weeks of lock-down.
“I’ve been working incredibly hard to save up my first luxury purchase and I’ve always dreamt of owning a classic Chanel bag for its craftsmanship and timeless elegance. The sudden price increase means that I might have to rethink investing my money.”
I caught up with a Chanel enthusiast Noora and asked her what she thinks of this. She expressed the disappointment and frustration that she felt after discovering Chanel’s the price increase.
After her incredible efforts in trying to save to invest in her dream Chanel’s handbag, she stated how she is left with no other choice but to consider the second-hand market.
“So, after the price increase, I will seriously have to consider my options in terms of continuing to save up or venturing into the luxury second-hand market.
Ideally, I always found the idea of going to a Chanel boutique alluring and the shopping experience indulgent, but I am not so quite so sure if I’m willing to justify the hefty price tag just yet.”
This slideshow requires JavaScript.
Like other customers, I know that price increases happen annually this occurs among other high-end brands such as Louis Vuitton and Gucci.
Noora said: “Chanel is anyway known to have annual price increases. However, the timing of this particular sudden increase is definitely strange and frustrating.
It could be that they are trying to compensate for loss of sales but overall, I think it would be really helpful if brands like Chanel can be more transparent with their consumers”
Particularly I think what has surprised us the most is the inaccuracy of Chanel’s statement. A research conducted by Pursebop revealed that some of Chanel’s most coveted products increased up to 25%. With the most expensive being their Classic Mini Square Flap originally retailing for £2680 to £3350. That is a massive increase.
Chanel Classic- Price Comparison
So how would you know what to invest in? Is it worth the price? Is second-hand market the best option after all? Seeing as Chanel will always thrive through economic trauma.
Essentially this means that the leather items will continue to sell for it’s current price or more than what the product was purchased for.
Noora said: “I think It’s only a matter of time before the second-hand market will follow up and increase their prices as Chanel goods- particularly the classics are known to be an investment pieces in terms of their re-sale value, but an increase of up to 25% is not something that I had anticipated any time soon.”
Chanel have increased their prices by 4 – 25% & have removed pricing off of their website, as usual when a price change comes in. A Chanel Classic Mini Square Flap Bag, previously €2,680 is now €3,350 (+25%).
Twitter Ads info and privacy
94 people are talking about this
It is easy to pick on brands and label them as greedy, but the reality is the luxury market only focus on people that obtain unlimited wealth.
The high-end market do not focus on mathematics margins, instead merely on demand & exclusivity. However, the question remains, why have they increased the price during a Pandemic?
According to Noora- “I’m not entirely sure, it could be for a number of reasons, perhaps due offset the loss of sale due to store closures, but perhaps it’s maybe a way to drive demand by amplifying the sense of its exclusivity.
Is Chanel taking a risk in increasing their pricing and being insensitive during this pandemic or are they just that powerful.- Or could it be both.
I spoke to a Fashion and Lifestyle Editor Journalist named Caroline Ferry on what she thinks about the impact of Chanel tactic to increase prices.
She said: “It didn’t seem that scandalous to me, I’m quite interested in Chanel prices. If you look at any auction websites those bags don’t really lose their value and I know it’s a very obnoxious thing to say, it’s an investment piece and I think that’s a very privileged thing to say.“
She explained: “If they know it’s going to keep its value they might as well cash in themselves, their making a big investment.“
Caroline believes that Chanel has no obligation to lower cost to consumers instead it is their choice. She continued:
“Chanel isn’t something anybody needs, and if they want to increase the price it’s not a supermarket it’s not an essential market. They have no obligation to price fairly it is a luxury good.”
I have always dreamt of owning a classic Chanel bag- The sudden price increase means that I might have to rethink investing my money While the whole world is going through a pandemic, certain designer handbags seem to still increase their value.
