Chanel Price Increase *please include location*

[Swanky]

Hi!
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[Pursebop]

I think no increase is horrible news! The classics have been a great long term investment because you've been assured yearly increases which have increased the resale value of the bags. You could justify spending $2k on a bag because you knew down the road it would be worth $4k. People who bought used could literally see a 100% return on their investment over time... while those buying new could one day get all of their original money back... plus have the pleasure of having had a brand new out the box bag. No increase this year just kills the whole party. You've now got an item that is not appreciating in value. And what's even scarier is the deeper reasons why no increases were done in the past year. Maybe the pricepoint has reached a level where people just won't pay more. Sales may have dropped.. demand dropped. Chanel isn't skipping a price increase as a thank you to all their customers.... trust me. If Chanel is not raising prices... it's basically because they can't. So on just about every level... no price increase is very bad news to those who love Chanel.

I would have to agree with you for the most part....although I do not purchase Chanel bags as an investment in my future, it is very reassuring to know that if there came a day where I may want to change out parts of my collection, or particular pieces I don't love anymore, that the worth to recover my costs might be there. I don't expect to 'make money' from my collection, but I would like it to hold its value. I do think the fact that Chanel did not continue on their twice a year craze, indicates that they indeed needed to give the market time to 'catch up'. The classics do sell out quickly, however there are many fewer to go around in their quest for EXCLUSIVITY! However stores are flooded with seasonal items, especially the department store Chanel boutiques. I think Chanel is walking a fine line, and they are doing what they must to keep balance. I would not at all be surprised if the increase is further postponed till after !3P. Personally I feel Chanel needs to improve quality and produce far fewer items so that they follow a QUALITY vs QUANTITY theory. "Law of diminishing returns" should apply across the board!

 

[HADASSA]

I would have to agree with you for the most part....although I do not purchase Chanel bags as an investment in my future, it is very reassuring to know that if there came a day where I may want to change out parts of my collection, or particular pieces I don't love anymore, that the worth to recover my costs might be there. I don't expect to 'make money' from my collection, but I would like it to hold its value. I do think the fact that Chanel did not continue on their twice a year craze, indicates that they indeed needed to give the market time to 'catch up'. The classics do sell out quickly, however there are many fewer to go around in their quest for EXCLUSIVITY! However stores are flooded with seasonal items, especially the department store Chanel boutiques. I think Chanel is walking a fine line, and they are doing what they must to keep balance. I would not at all be surprised if the increase is further postponed till after !3P. Personally I feel Chanel needs to improve quality and produce far fewer items so that they follow a QUALITY vs QUANTITY theory. "Law of diminishing returns" should apply across the board!

M, I totally agree. I think that Chanel's policies, especially where SAs are no longer allowed to send pics to their clients and those concerning the classics, have hurt as well. One just has to scroll through the "Authentic Finds" thread to realize just how this form of marketing has slowed considerably.

 

[wien]

I think no increase is horrible news! The classics have been a great long term investment because you've been assured yearly increases which have increased the resale value of the bags. You could justify spending $2k on a bag because you knew down the road it would be worth $4k. People who bought used could literally see a 100% return on their investment over time... while those buying new could one day get all of their original money back... plus have the pleasure of having had a brand new out the box bag. No increase this year just kills the whole party. You've now got an item that is not appreciating in value. And what's even scarier is the deeper reasons why no increases were done in the past year. Maybe the pricepoint has reached a level where people just won't pay more. Sales may have dropped.. demand dropped. Chanel isn't skipping a price increase as a thank you to all their customers.... trust me. If Chanel is not raising prices... it's basically because they can't. So on just about every level... no price increase is very bad news to those who love Chanel.

It's happy that all your purchases of Chanel are still valuable and profitable. Most Chanel fans like me are not trying to make money out of the handbag. It's not all about investment and profit of Chanel. It's the enjoyment of using the bag. I do believe that some people buy the bag and remain un-use and sell the bag later to make money. No price increase still a good news for most of the Chanel fans.

 

[tutushopper]

Ed.

I think no increase is horrible news! The classics have been a great long term investment because you've been assured yearly increases which have increased the resale value of the bags. You could justify spending $2k on a bag because you knew down the road it would be worth $4k. People who bought used could literally see a 100% return on their investment over time... while those buying new could one day get all of their original money back... plus have the pleasure of having had a brand new out the box bag.

When I bought my first Chanel bag, I never dreamed to sell it, and I haven't. Prices have way more than doubled, but that doesn't mean I'm buying Chanel bags for profit. I buy them to use them. Unique concept, I know. Economics and Marketing 101 explain all about what happens with market saturation and pricing. The fact that it used to take a couple of years for a series to run, versus a few months now (we are already into the high 177xxxxx numbers now) shows that there has in fact been an increase in the number of bags made (and sold), not a decrease. Demand is high, supply is high, and people are buying. Many did slow down or stop buying when the prices reached the level of 2010, but many new buyers came into the market after that. If the bags weren't selling, they'd not be making so many of them. Bags, clothing, and all accessories (save for solid gold/platinum/silver) are all things that usually depreciate, so the fact that Chanel bags hold a value is great, but not the reason why most buy them.

I find it interesting that your 1 and only post is saying it's "horrible" to not have a price increase. I, for one (and I know many others are with me on this) would love to see no price increase. Some of us aren't people who buy to sell; we buy to use and love.

 

[Pursebop]

M, I totally agree. I think that Chanel's policies, especially where SAs are no longer allowed to send pics to their clients and those concerning the classics, have hurt as well. One just has to scroll through the "Authentic Finds" thread to realize just how this form of marketing has slowed considerably.

Yes Hadassa, they really need time to sort out their strategy! If exclusivity is what they seek, then the volume of goods out there needs to reflect that. The number of sale items we saw this year was astronomical! They cannot ever be what I think they aspire to with goods in such abundance that there are massive Chanel sales out there. Dept stores had fall seasonal goods (12A) at 50% off! I'm quite sure these things contradict the EXCLUSIVITY they are looking for.

 

[BagsNBaubles]

Hi ladies, are price increases only for classics? There is a seasonal I have my eye on but won't be able to buy it for a few more weeks probably.

 

[tutushopper]

Yes Hadassa, they really need time to sort out their strategy! If exclusivity is what they seek, then the volume of goods out there needs to reflect that. The number of sale items we saw this year was astronomical! They cannot ever be what I think they aspire to with goods in such abundance that there are massive Chanel sales out there. Dept stores had fall seasonal goods (12A) at 50% off! I'm quite sure these things contradict the EXCLUSIVITY they are looking for.

As to trying for exclusivity, one would think that putting out less goods at higher prices would attain that.

As for the sale, I didn't personally go to any of the sales. I did notice from the threads here, that many people bought things and then returned them, and did it at a time when a second markdown occurred, thus artificially inflating the number of bags available at a greater markdown than would have occurred if the sales had been final. Perhaps department stores/Chanel should look at this and adjust accordingly, making all sale purchases final sale. That would then give a truer picture of the number of bags available at a given price % point.

 

[U-lala]

I would have to agree with you for the most part....although I do not purchase Chanel bags as an investment in my future, it is very reassuring to know that if there came a day where I may want to change out parts of my collection, or particular pieces I don't love anymore, that the worth to recover my costs might be there. I don't expect to 'make money' from my collection, but I would like it to hold its value. I do think the fact that Chanel did not continue on their twice a year craze, indicates that they indeed needed to give the market time to 'catch up'. The classics do sell out quickly, however there are many fewer to go around in their quest for EXCLUSIVITY! However stores are flooded with seasonal items, especially the department store Chanel boutiques. I think Chanel is walking a fine line, and they are doing what they must to keep balance. I would not at all be surprised if the increase is further postponed till after !3P. Personally I feel Chanel needs to improve quality and produce far fewer items so that they follow a QUALITY vs QUANTITY theory. "Law of diminishing returns" should apply across the board!

As my friend Grammy said: If you want to invest, stick with something you really like – you may have to keep it forever

 

[tutushopper]

As my friend Grammy said: If you want to invest, stick with something you really like – you may have to keep it forever

Wise Grammy

 

[Pursebop]

As my friend Grammy said: If you want to invest, stick with something you really like – you may have to keep it forever

i love this!

 

[Pursebop]

As to trying for exclusivity, one would think that putting out less goods at higher prices would attain that.

As for the sale, I didn't personally go to any of the sales. I did notice from the threads here, that many people bought things and then returned them, and did it at a time when a second markdown occurred, thus artificially inflating the number of bags available at a greater markdown than would have occurred if the sales had been final. Perhaps department stores/Chanel should look at this and adjust accordingly, making all sale purchases final sale. That would then give a truer picture of the number of bags available at a given price % point.

precisely tutushopper, Chanel items on sale the very next season = DOES NOT EQUAL EXCLUSIVITY!

 

[tutushopper]

precisely tutushopper, Chanel items on sale the very next season = DOES NOT EQUAL EXCLUSIVITY!

Sales usually happen the very next season; it's the pattern that has been established that at the end of the selling season for winter, say, things go on sale to make room for things for spring. This pattern has been around for a while, whether it's clothing or accessories. I think that the explosion of social media as a platform for making items more readily available (look at the two threads for fall 2012 and the high volume of "I'm returning this to ___" posts) has had an effect on more people being aware of this and being able to access these items without stepping foot in a store. It has also, in the case of the returns, made things available at a lower markdown possible for more people. That, plus the idea that "well, I can buy this and this and that and then return most of it when I decide what all I can find" mentality adds to the availability of items at a greater markdown. Perhaps this is one of the policies that will be discussed in upcoming meetings with Chanel and the department stores. That, and perhaps limiting the time frame on Chanel classic returns in general to be more in line with company policies, i.e. 14 days, so that classics don't end up being returned a year down the line.

 

[Jeanxy]

In the end, Chanel is still a business. Whether they would like to attain exclusivity or not, I'm uncertain but I am almost certain they would like to see their products sell! In that sense, I think they are weighing out their options and potentially delaying price increases because it would potentially cause some to no longer purchase their products. Just my thoughts!

 

[Pursebop]

Sales usually happen the very next season; it's the pattern that has been established that at the end of the selling season for winter, say, things go on sale to make room for things for spring. This pattern has been around for a while, whether it's clothing or accessories. I think that the explosion of social media as a platform for making items more readily available (look at the two threads for fall 2012 and the high volume of "I'm returning this to ___" posts) has had an effect on more people being aware of this and being able to access these items without stepping foot in a store. It has also, in the case of the returns, made things available at a lower markdown possible for more people. That, plus the idea that "well, I can buy this and this and that and then return most of it when I decide what all I can find" mentality adds to the availability of items at a greater markdown. Perhaps this is one of the policies that will be discussed in upcoming meetings with Chanel and the department stores. That, and perhaps limiting the time frame on Chanel classic returns in general to be more in line with company policies, i.e. 14 days, so that classics don't end up being returned a year down the line.

agree completely! Point I was trying to make is that if Chanel wants to be ultra exclusive then bags should not go on sale at all! ( forget Hermes, LV bags don't even go on sale!)
It used to be that several season old bags would go on sale here or there, but this last sale season the 12A bags were actually on sale.
I just think its difficult to command 6-7-8K pricing for classics but have seasonal bags marked down at every store!

 

[tutushopper]

agree completely! Point I was trying to make is that if Chanel wants to be ultra exclusive then bags should not go on sale at all! ( forget Hermes, LV bags don't even go on sale!)
It used to be that several season old bags would go on sale here or there, but this last sale season the 12A bags were actually on sale.
I just think its difficult to command 6-7-8K pricing for classics but have seasonal bags marked down at every store!

While I do think they need to take a look at how they structure their offerings, Hermes and LV don't offer near the range of bags that Chanel does. Dior, same thing. While they do put out some new ranges and seasonal bags (like the new Bar bag coming up), they no longer put bags on sale, other than at a few outlets. Chanel, on the other hand, keeps increasing the price of Classics while the quality has diminished. The quality of Hermes, LV, and Dior have not. So that's one point. Also, because Chanel does offer a very wide range in many price points, while keeping the classics at a high price point, it's hard to compare them to Hermes, Dior, or LV in this aspect. You just don't see those companies coming out with 25+ new styles a season.

If Chanel truly wants the exclusivity of Hermes, then they should have only the classics, extremely limitied seasonal bags, and never put bags on sale. However, they really need to address the quality issue at the same time. Because the Chanel "empire" if you will was built on perfume, clothing, and hats they have a slightly different model than Hermes, which was built initially upon leather saddles.

I think Chanel and Dior are more closely related for comparison purposes, and the quality at Dior really is better than Chanel, even though their prices are lower. Dior stopped the practice of having department store boutiques and went with a stand alone store only model for clothing and bags (with very few exceptions). They also do not have sales of bags in store, but do still have sales on clothing and shoes. Perhaps this is the way that Chanel should go? Carry only classic lines, have only stand alone boutiques, let the department stores carry only perfume and makeup, and never put bags on sale; if they do this, they absolutely need to address the quality issue.

I wonder how many would like to see this change?

Back to topic, I have no idea of the date of the next price increase, which bags will be affected, or how much of a % change there will be. I only know what I have heard from others, and that is a meeting in which policies are going to be discussed, so perhaps there are some strategic changes coming on the horizon.