I thought I had heard it was the 27th. Wonder why everything goes up at different times?
Any information on 2015 price increase?
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I thought I had heard it was the 27th. Wonder why everything goes up at different times?
Just read from the Chanel subforum that Chanel is adjusting their price DOWNWARD in Hong Kong. Could it be because of the low and weak euro and thus all sales go to Europe, the management in Hong Kong does not want to lose the business and revenue?
If so, Hermes should follow the same direction too! Traditionally, the pricing different between euro and HKD for H is more than that of Chanel.
If so, Hermes should follow the same direction too! Traditionally, the pricing different between euro and HKD for H is more than that of Chanel.
The narrow Clic H is now $670 on the US website.
CDC regular leather bracelets also increased from $1250 to $1275.
Oh thank you for the update. 25 dollars increase is not that bad. Oh well, I ordered online already and my sa lost out on the commission lol.
For some reason, I assumed the increase to be much more. I had purchased a ulysses pm notebook and it went up 65 dollars.
I was thinking it would be much higher too - maybe b/c we were thinking along the lines of 10%? I'm still glad I beat the increase by doing a charge/send over the weekend though.
Guess I was totally wrong on the 27th lol.
Gah, I am so stupid!! The bracelet (not a clic h) I've been lusting after on the website just went up to over $800.00 today 
. I didn't realize all bracelets would be affected today. Should have just pulled the trigger when I wanted it the first place. Not that it was inexpensive to begin with, but still...I hate paying the extra $30.00 or so when I know just a few days ago I didn't have to. That's like additional shipping/tax money.
. I didn't realize all bracelets would be affected today. Should have just pulled the trigger when I wanted it the first place. Not that it was inexpensive to begin with, but still...I hate paying the extra $30.00 or so when I know just a few days ago I didn't have to. That's like additional shipping/tax money.
Chanel is dropping prices in China, Hong Kong, Vietnam, and Russia by 20%, and increasing prices in Europe, due to the widening currency related pricing discrepancies.
I believe Chanel did this in a japan a few years ago.
Will H and others follow suit?
http://www.wsj.com/articles/chanel-...-market-1426623246?mod=WSJ_hp_RightTopStories
I believe Chanel did this in a japan a few years ago.
Will H and others follow suit?
http://www.wsj.com/articles/chanel-...-market-1426623246?mod=WSJ_hp_RightTopStories
Hi Monceau, may we trouble you to copy and paste the text? We can't access the text in full.....thanks.
Sure:
From the Wall Street Journal:
Chanel Acts on Prices as Euro Worsens Gray Market
PARISFrench fashion house Chanel said Tuesday it would increase prices in Europe on some of its prestigious handbags while slashing them in China in a bid to eliminate a growing price gap between Europe and Asia caused by the weakened euro.
Chanel said the price changes would take effect on April 8 and are required to eliminate a flourishing gray market for travelers who have been taking advantage of the vast price differential, buying handbags in Europe and reselling them in China.
This measure is intended to reduce price differentials across countries, which have widened considerably further to the recent depreciation of the euro, Chanel said.
The move could be the first of many price adjustments in the luxury industry after the deep slide in the euro against the dollar and other currencies has led the price of high-end accessories to vary greatly between New York, Paris and Beijing. While handbag prices have always been higher in markets outside of Europe, the current gap is far beyond the historical norm.
For consumers from mainland Chinaan important market for the luxury industrya weak euro, in addition to hefty Chinese import duties, has made the price differential so large that it has prompted shoppers to buy their luxury goods, especially handbags, while traveling in Europe.
The price gap has also inspired a growing parallel market, with traveling shoppers reselling their handbags online on sites like Taobao, a Chinese site that is similar to eBay, at prices that are higher than the retail price in Europe but still cheaper than those in China.
The regional variances in prices has created a headache for many brands that are managing global networks of stores in the midst of wild currency swings. After a stretch of rapid growth in Asia, many brands have been forced to rethink their strategy, slowing or halting new store openings as shoppers, especially from China, make the most of trips abroad to splurge rather than spend back at home.
Currently, the price gap is large enough for a Chinese shopper to justify the trip to Europe. The price in China for the Chanel classic 11.12 bag is 38,200 yuan ($6,095), or about 63% higher than the 3,550 ($3,750) price a shopper pays in Paris for the same bag. Meanwhile, the same bag was recently selling for 31,000 yuan by one trader on Taobao.
Ive never seen a discrepancy that large before, said Aaron Fischer, an analyst at CLSA in Hong Kong.
Chanels new prices will significantly narrow the gap. The company said that the bag is set to rise 20% to 4,260 under the new policy. The ticket for the same bag in China is set to fall 21% to around 30,000 yuan. Prices will also decline in Hong Kong, Korea, Vietnam and Russia. Meanwhile, the price in the U.S. will remain unchanged at $4,900.
Other brands are encountering a similar phenomenon: A Gucci original Jackie canvas shoulder bag costs 82% more in Beijing than in Paris. A spokeswoman for Guccis parent company, Kering SA, declined to comment.
Luca Solca, an analyst at BNP Paribas, says historically, the same luxury handbag has always been cheapest in Paris, and has typically been 10% more expensive in New York and between 30% and 40% in China. The higher prices reflect import duties, especially in China.
However, that price gap has widened significantly in recent months as the euro has slid to a 12-year low, and luxury brands havent been able to keep pace with their price increases.
Avery Booker, a retail consultant at China Luxury Partners in New York, said that other brands will likely follow Chanels lead.
A lot of brands are worried theyre pricing themselves out of the market in China, he said. Still, he said that tourist shoppers from China are likely to continue to make the bulk of their purchases in Europe, partly because the price gap is still enticing. As well, he said the anti-corruption measures by the Chinese government discourage luxury buying at home and consumers feel that they get superior shopping experience in Europe.
Antoine Belge, an analyst at HSBC said that the low euro is still a huge bonus to European luxury companies, even if they cause a headache on the pricing front. The weak euro not only attracts tourist shoppers to European flagships, but it also makes sales made abroad count for more when converted back into the European currency.
The benefit of the low euro in profits is far greater than the problem of pricing, he said.
Write to Jason Chow at [email protected] and Nadya Masidlover at [email protected]
From the Wall Street Journal:
Chanel Acts on Prices as Euro Worsens Gray Market
PARISFrench fashion house Chanel said Tuesday it would increase prices in Europe on some of its prestigious handbags while slashing them in China in a bid to eliminate a growing price gap between Europe and Asia caused by the weakened euro.
Chanel said the price changes would take effect on April 8 and are required to eliminate a flourishing gray market for travelers who have been taking advantage of the vast price differential, buying handbags in Europe and reselling them in China.
This measure is intended to reduce price differentials across countries, which have widened considerably further to the recent depreciation of the euro, Chanel said.
The move could be the first of many price adjustments in the luxury industry after the deep slide in the euro against the dollar and other currencies has led the price of high-end accessories to vary greatly between New York, Paris and Beijing. While handbag prices have always been higher in markets outside of Europe, the current gap is far beyond the historical norm.
For consumers from mainland Chinaan important market for the luxury industrya weak euro, in addition to hefty Chinese import duties, has made the price differential so large that it has prompted shoppers to buy their luxury goods, especially handbags, while traveling in Europe.
The price gap has also inspired a growing parallel market, with traveling shoppers reselling their handbags online on sites like Taobao, a Chinese site that is similar to eBay, at prices that are higher than the retail price in Europe but still cheaper than those in China.
The regional variances in prices has created a headache for many brands that are managing global networks of stores in the midst of wild currency swings. After a stretch of rapid growth in Asia, many brands have been forced to rethink their strategy, slowing or halting new store openings as shoppers, especially from China, make the most of trips abroad to splurge rather than spend back at home.
Currently, the price gap is large enough for a Chinese shopper to justify the trip to Europe. The price in China for the Chanel classic 11.12 bag is 38,200 yuan ($6,095), or about 63% higher than the 3,550 ($3,750) price a shopper pays in Paris for the same bag. Meanwhile, the same bag was recently selling for 31,000 yuan by one trader on Taobao.
Ive never seen a discrepancy that large before, said Aaron Fischer, an analyst at CLSA in Hong Kong.
Chanels new prices will significantly narrow the gap. The company said that the bag is set to rise 20% to 4,260 under the new policy. The ticket for the same bag in China is set to fall 21% to around 30,000 yuan. Prices will also decline in Hong Kong, Korea, Vietnam and Russia. Meanwhile, the price in the U.S. will remain unchanged at $4,900.
Other brands are encountering a similar phenomenon: A Gucci original Jackie canvas shoulder bag costs 82% more in Beijing than in Paris. A spokeswoman for Guccis parent company, Kering SA, declined to comment.
Luca Solca, an analyst at BNP Paribas, says historically, the same luxury handbag has always been cheapest in Paris, and has typically been 10% more expensive in New York and between 30% and 40% in China. The higher prices reflect import duties, especially in China.
However, that price gap has widened significantly in recent months as the euro has slid to a 12-year low, and luxury brands havent been able to keep pace with their price increases.
Avery Booker, a retail consultant at China Luxury Partners in New York, said that other brands will likely follow Chanels lead.
A lot of brands are worried theyre pricing themselves out of the market in China, he said. Still, he said that tourist shoppers from China are likely to continue to make the bulk of their purchases in Europe, partly because the price gap is still enticing. As well, he said the anti-corruption measures by the Chinese government discourage luxury buying at home and consumers feel that they get superior shopping experience in Europe.
Antoine Belge, an analyst at HSBC said that the low euro is still a huge bonus to European luxury companies, even if they cause a headache on the pricing front. The weak euro not only attracts tourist shoppers to European flagships, but it also makes sales made abroad count for more when converted back into the European currency.
The benefit of the low euro in profits is far greater than the problem of pricing, he said.
Write to Jason Chow at [email protected] and Nadya Masidlover at [email protected]
Looks like the US won't see a price decrease, at least for Chanel.
Meanwhile, I heard through the grapevine that H may have a European price increase this fall, which would be in line with the point in this article about pricing discrepancies. The Euro drop has been farther and faster than anticipated.
For those of us hoping to score a (relative) bargain via a trip to Europe, it appears that time is running out on that opportunity.
Meanwhile, I heard through the grapevine that H may have a European price increase this fall, which would be in line with the point in this article about pricing discrepancies. The Euro drop has been farther and faster than anticipated.
For those of us hoping to score a (relative) bargain via a trip to Europe, it appears that time is running out on that opportunity.
Monceau, I think that you are right ~ it's Paris now or never. Thanks for the WSJ article, very interesting.
I was thinking it would be much higher too - maybe b/c we were thinking along the lines of 10%? I'm still glad I beat the increase by doing a charge/send over the weekend though.
Great you ordered during the weekend. I'm glad I did because my SA told me they haven't gotten the bracelet I wanted.
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