Did anyone see this article in Bloomberg yesterday? How much higher can Chanel go?
Chanel’s $10,000 Handbags May Become Even Pricier in September
Chanel’s $10,000 Handbags May Become Even Pricier in September
100% agreed that Chanel is super popular among Asians , I was astonished by the number of Chanel bags I saw in Hongkong alone !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.
Agree! Didn’t buy but recently tried The Row Bourse bag and it was lovely!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.