Chanel bags may soon cost you a bundle
In 2019, a medium-size Chanel Flap bag could be bought for 71.5 million won ($50,300).
Now, the exact same handbag goes for just about double.
Chanel Korea said Wednesday it raised the prices of its all products by 3 to 13 percent, in its fourth price hike this year in Korea.
The price of a Classic Medium Flap Bag increased by 6.2 percent to 13.16 million won.
Compared to November 2019, the price is up 84 percent. The Classic Medium Flap Bag is one of Chanel's most popular selling items in Korea, especially as a wedding gift.
The Classic Small Flap Bag now costs 12.37 million won, up 6.6 percent.
The small Boy Bag rose 8.8 percent to 7.98 million won while the 19 Handbag increased 7.8 percent to 8.27 million won.
Prices of wallets increased by 6 percent on average, and prices of jewelry rose 13 percent.
Chanel Korea cited the reason for the price hikes as being “in response to exchange-rate fluctuations.”
This increase is Chanel's 11th since the Covid-19 pandemic. The price hikes in recent years are significant as Chanel only raised prices by 6.5 percent between 1990 and 2010 and 10 percent from 2011 to 2015.
“Chanel is striving to be part of the Hermes world and less of the Vuitton and Gucci world,” Charles Gorra, CEO of Rebag, said during an interview with Bloomberg.
“They are trying to go upscale.”
Other luxury brands are also raising their prices.
Burberry upped the prices of its products by a maximum of 10 percent last month, while Fendi increased by some 6 percent.
Louis Vuitton on Oct. 27 increased the prices of its products by some 3 percent.
Hermes also hinted at increasing its prices by 5 to 10 percent in January.
BY YOO JI-YOEN, SARAH CHEA [firstname.lastname@example.org]