1. The price increase seems to be a result of the brand being overexposed. The way I see it is that if you can afford to buy a Chanel - buy one. Why do you have to be of a certain income class or social class?

    The problem lies with the replicas - if you stop that, then perhaps your problem will go away. But, even with a price increase, say Chanel comes out with another "IT" bag like the Cabas - don't you all think it will be copied regardless of the fact that it is more expensive? The bag will still be splashed every where and on every one - the elite win because they get it for free or can afford them and the mass wins because they will still have plenty of fakes to choose from.

    We, the loyal customers that may not be mega rich or of celebrity stature are the ones that lose.

    I remember Gucci and Ralph Lauren going thru the same thing back in the 80's where the GG logo and that Polo horse showed up everywhere - I believe Gucci has made tremendous strides in distancing itself from the replicas - because it can't be helped. How about LVMH? LV has to be THE most copied brand in the world yet they seem to manage to appeal to a variety of income groups and maintain an air of luxury.

    It is all about how the company reacts and it should respect its true customer - if it does, no matter how many fakes there are, there will always be a loyal client base.
  2. Well, after this price increase, I wonder how sales will be for Chanel. If indeed we are their loyal fan base, they will suffer a loss.

    I agree with the LV part, how they seem to be able to provide LV bags at many different price points, yet still keep a certain lever of exclusiveness. It will be interesting to see how sales go at Chanel, will they suffer a loss at all or not?
  3. Historically, LV raises it's prices far more often than Chanel.
    percentage -wise I think the increases are similar, but Chanel's seems higher because their starting price point is higher.
    For example, if they both increase 15%, 15% of teh average LV is lower than 15% of the average Chanel.

    I visited the LV Forum more before i got into Chanel and I remember there being 2-3 increases/year, but they were as much $, but seemed almost equal if you think about it in percentages.

    I think a lot of brands are trying to figure out a way to continue to make as much $, but to be less saturated.

    just guessing:shrugs:
  4. I don't think they'll suffer a loss personally.
    I think they may sell slightly fewer bags at a higher price making their bottom line the same as selling more bags at a lower price.
  5. Swanky said it: sell less bags but for more $$$ and your bottom line stays the same AND your brand name will start to be said in awe.

    Bottom line, there will always be those you can afford whatever the price. And I know quite a few who will NOT buy something if "the masses" have access to it. There is something about knowing only a few, a SELECT few have the ability to own an item..... and YOU are one of them. That feeling appeals to many; quite a few of them are in my own family (roll eyes here). If CHANEL wants to become "rare" then they will limit the number of styles they release; and if I remember correctly, they HAVE been doing this w/certain bags. Remember the cherry red flap w/the double silver chain straps? Limited release and it sold out world-wide in days.

    It has already begun.
  6. Swanky is absolutely right! not only LV has more often increases but they technically don't "show"!Since LV has really low starting prices even a 20%+ increase will not be so much noticed as the respective one on a Chanel bag !And it is the lower priced range of bags LV so often increases-in other words those which are affordable to most customers.
    I really think there's no comparison to be made between plain canvas(LV) and luxurious leather Chanel uses!
    When I come to think how much LV charges for leather bags (usually goatskin if I'm not mistaken) then I don't find Chanel prices more expensive!
    I don't mean to justify Chanel increases in any way but have we ever thought that Chanel maybe follows the general increases while other brands are at the lead??
    When I see the new launch of say the mirage ligne in LV,be it mainly canvas with only the handles in leather(and I'm not talking of exotic leather!) and brass hardware starting from 1300 EUROS up to 2400 EUROS then where is Chanel supposed to stand??
    Harley I agree with you about increases being the result of overexposure but on the other hand, had a brand not been so expensive or overpriced there wouldn't have been replicas at least not so many!
    It seems to me that the more a brand is copied the more sought after it becomes!
  7. I agree with that completely.

    This is slightly a different senario but this is why higher end boutiques can sell far less as far as quantity than a store such as (just an example) H&M or Forever21 and still make money. I don't think that an increase will necessarily hurt Chanel.

  8. Swanky, you bring up a good point. I think they'll break even. I'm just new to chanel, and I'm kicking myself for not buying certain items last year. I can't believe the prices increased so much in just a short time..:wtf:
  9. It's just that the fact that they increased the price of the jumbo almost 1k in just one year is just insane!!! It forces all of the non-super elite to snatch up bags before the increase. Either way, I know the Chanel house will continue to thrive. They do price increases because they can. Even though the price of the jumbo increased by 1k, people still buy them today, and they'll keep buying them after November 1st.

    I really want the white caviar jumbo right now, but I don't want to overexert my funds and I never like going into credit card debt, so I'm just going to wait until Christmas time. It sucks that I'll be hit with a $400 increase just for waiting 1 month or two. *sigh*
  10. when I first started loving Chanel, just last year, they had not had a price increase in over 2 years.
    Hopefully people new to Chanel don't assume this is normal, historically, it is not.
  11. I disagree. Since last year around Christmas, the price of the average LV has gone up about 10% (ex. reporter bag at $780, now $840). Compare that to Chanel, which during the same period some bags went up in price over 60% (ex. flap at $1600, now $2600).
  12. I only got into Chanel when I turned 18 in June and had a lot of graduation money to spend.

    Now, I really wish I had gotten into it earlier when the prices were "cheaper".

  13. Whew!! This is very comforting... Thanks for the info!
  14. VO, I can't count it from last year Christmas only, I would if increases had been more standard for Chanel. Hopefully they don't become standard:shocked: this is obviously too much if it's something they continue yearly from now on.
    I count it from their last increases which were over 2 years ago.
    Also, most bags did not increase $1k.
  15. I can see what you're saying but can't totally agree with you, LV does have a lot of increases on a regular basis but it goes like 4-6% at a time 2-3 times a year and it's not across the board, every bag/line seems to increase differently and some decrease at times, it's sort of a "adjustment" that they go through.....some of their reasoning is the weakness of the dollar which can be justified to some extent, I think they also need to pay for their expansion projects. I've even been around buying LV at times of a full price decrease due to the Euro. If Chanel followed closer to LV increase practices this year jumbo would only be up to $1850 (or for the past two years it would be $2150) not $2600. I understand Chanel hasn't had major increases in a couple of years but that just doesn't justify $1000 in one year. Just to compare, I know of a particular LV bag that was about $1500 close to 5 years ago which is now about $2000, much more reasonable of a price increase to me. Sorry using LV as such a base but it's the only other brand I know very well.