Chanel Increases Prices of Its Iconic Handbags and Small Leather Goods Worldwide
Face-masked customers formed huge queues outside Chanel stores in China and Seoul despite COVID-19.
In order to offset raw material costs amid the ongoing COVID-19 pandemic, Chanel announced that it has increased the prices of its iconic handbags and small leather goods across the globe. The French fashion house told Reuters in an e-mail statement:
“The price adjustments only regard Chanel’s iconic handbags, 11.12 and 2.55, as well as Boy, Gabrielle, Chanel 19 bags and certain small leather goods. These adjustments are made while ensuring that we avoid excessive price differentials between countries, in line with our commitments regarding price harmonization.”
Initially enforced in France with an increased range of 5 to 17 percent (in euros), shoppers in China and Seoul immediately started lining up outside Chanel stores shortly after the news was announced on May 13. According to the South China Morning Post, “longer than usual queues formed at Chanel stores in China” before the price raises were implemented. Face-masked customers also arrived outside a Chanel store in Seoul as early as 5 a.m. KST. Other luxury brands like Louis Vuitton and Tiffany & Co. have also had to execute the same measures in South Korea, with an increase of up to 11 percent. Critics suspect that high-end labels are taking advantage of Korean consumers due to the country easing social distancing rules.
Elsewhere in fashion, Dries Van Noten and a group of brands and retailers have signed an open letter to the industry announcing a proposal of adjusting fashion deliveries and stopping mid-season sales.
