Chanel could end up being one of those companies that prices itself out of favor with consumers. Lots of companies have tried the tactic of raising prices consistently without improving quality or services and (eventually) shoppers realize that and drift away from the brand. Chanel can't compete with H at that price level, the products are poorly made by comparison and people who can afford to drop 10K on a bag will know that. If their flaps get to 10K I would expect to see other things come along with it, like lifetime repair/support (like H and LV offer, basically), online shopping, and an improvement in quality and craftsmanship. Their sales model is already outdated, by not being online when every other company is is really bizarre in a global marketplace and e-commerce world. And lot of Chanel's success was due to Chanel herself and KL, so unless people really like their new designer the potential to lose a customer base is huge.