Bloomberg: Chanel’s $10,000 Handbags May Become Even Pricier in September

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30th anniversary cuff
O.G.
Aug 31, 2008
16,697
73,602
An SA from another top fashion house shared this with me

financial reports seem to indicate that both Hermes and Chanel are anticipating record growth, even with concerns
over the economy, recession, etc. My uneducated, layman opinion is that they are probably correct based on a factoid I read in FT. In an article that attempted to dispel rumors that Chanel would IPO, there was a statement that the top 2% of chanel clients brought in 40% of the brands revenue. So far, all signs point to record growth among the very top of the premier luxury big business brands. It’s the ones in the middle to upper middle that may slow down.


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DILF

Member
Nov 13, 2022
24
264
Thank you for starting this topic. I read a similar article in Yahoo Finance which I will quote here:

Chanel Revenues Gained 17% in 2022

Emboldened by a strong performance in 2022, Chanel — with the famed double C logo — plans to double capital expenditures this year to $1.3 billion, keep investing in communications and events, and add more than 5,000 employees as it seeks to further fan desirability and pursue the “ultimate luxury experience” for its diverse, worldwide clientele.

"Roughly half of Chanel’s revenue gains in 2022 can be attributed to price increases, and the rest volume, according to Blondiaux."

"He also noted “we are increasing very significantly our business with Chinese consumers outside of China,”

For example, in France last year, the brand’s business with Chinese consumers was down 90 percent versus the pre-pandemic year 2019. By contract, spending by Chinese consumers in France last month, April, was down by only 14 percent. “This shows the speed at which the return of international travel of Chinese consumers is happening,” Blondiaux marveled.

"Revenues in Asia Pacific gained 14.3 percent to $8.65 billion on a comparable basis, stripping out the impact of currency fluctuations and changes in company structure. Revenues improved 29.6 percent in Europe to $4.72 billion and 9.5 percent in the Americas to $3.86 billion."

---My Two Cents---

Revenues in Asia is more than double than the US - Chanel is insanely popular in Asia and with Asians in general. Its status and reputation as THE premier luxury brand alongside H is unwavering. Point is, does not matter how high the prices go, people will keep buying.
 

CrazyCool01

Member
May 17, 2015
2,515
5,194
Thank you for starting this topic. I read a similar article in Yahoo Finance which I will quote here:

Chanel Revenues Gained 17% in 2022

Emboldened by a strong performance in 2022, Chanel — with the famed double C logo — plans to double capital expenditures this year to $1.3 billion, keep investing in communications and events, and add more than 5,000 employees as it seeks to further fan desirability and pursue the “ultimate luxury experience” for its diverse, worldwide clientele.

"Roughly half of Chanel’s revenue gains in 2022 can be attributed to price increases, and the rest volume, according to Blondiaux."

"He also noted “we are increasing very significantly our business with Chinese consumers outside of China,”

For example, in France last year, the brand’s business with Chinese consumers was down 90 percent versus the pre-pandemic year 2019. By contract, spending by Chinese consumers in France last month, April, was down by only 14 percent. “This shows the speed at which the return of international travel of Chinese consumers is happening,” Blondiaux marveled.

"Revenues in Asia Pacific gained 14.3 percent to $8.65 billion on a comparable basis, stripping out the impact of currency fluctuations and changes in company structure. Revenues improved 29.6 percent in Europe to $4.72 billion and 9.5 percent in the Americas to $3.86 billion."

---My Two Cents---

Revenues in Asia is more than double than the US - Chanel is insanely popular in Asia and with Asians in general. Its status and reputation as THE premier luxury brand alongside H is unwavering. Point is, does not matter how high the prices go, people will keep buying.
100% agreed that Chanel is super popular among Asians , I was astonished by the number of Chanel bags I saw in Hongkong alone !
 

step2005

O.G.
Aug 5, 2011
225
2,098
I saw the Bloomberg article. Hermes and Chanel prices will keep increasing as they have a large enough customer base that will buy no matter what.

But it makes me consider bags by The Row, for example, which are also very expensive. They aren't as recognizable as Hermes/Chanel but IMO are extremely luxurious.
Agree! Didn’t buy but recently tried The Row Bourse bag and it was lovely!
 
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