Chanel Price Increase *please include location*

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#91
ItsMyWorld said:
Okay, but as a luxury brand, I don't think that the "middle class" or "middle group" is Chanel's bread and butter here. And again, if they raise the prices again, that means they don't have to sell as many units and so I don't think they care to the extent that you think they do as they are still making their money.

Yes, there is the (growing) risk of a recession and whatnot but nonetheless, I maintain what I said. I really don't think that alienating those who really have to save for Chanel is first and foremost in their minds when doing these price increases.
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I humbly disagree. But I am not going to engage you in debate. Look up "aspirational customer." It's a group that EVERY luxury group wants to tap into. Everyone from Tiffany & Co. to LVMH. Also I read the Wall Street Journal (WSJ) every single day. Check out these two articles to see that high-end brands do and should care about the bottom line. These articles make specific reference to the importance of the "middle-class" or "aspirational" customer. So I guess the editors of the WSJ are just out of touch ... :confused1:
http://online.wsj.com/article/SB119456835990487306.html
http://online.wsj.com/article/SB120044885287093167.html
 
#92
pinkrose said:
The ironic thing about this whole situation is that ever since Chanel increase its price, more people are buying Chanel. I'm saying this for the Chanel lovers and people who recently switch from another brand to Chanel. A great example is that i now see more people are visiting this forum. On the average its about 90-100 people viewing, compare to before, about 50-60. Chanel price increases, get people to talk about them. It's like "Hey! get the bag before it go up again." Sorta like a publicity stunt. But we're the one that get hurt, not them.

With all this said, if Chanel increase their prices again, I will no longer buy Chanel. Regardless the fact whether they care or not, this is out of hand. Enough is enough.
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I'm with you. It is definitely what got me in the first place. I started my first Chanel back in 06 and because of all the price increases happened in 07, I speeded up storing these "classic" bags last year. I still want a couple of bags from S/S08, but if they are going to be more than the price shown on their catelogs for this year when the bags are actually out, I will definitely quit buying Chanel.
 
#93
P-B said:
I humbly disagree. But I am not going to engage you in debate. Look up "aspirational customer." It's a group that EVERY luxury group wants to tap into. Everyone from Tiffany & Co. to LVMH. Also I read the Wall Street Journal (WSJ) every single day. Check out these two articles to see that high-end brands do and should care about the bottom line. These articles make specific reference to the importance of the "middle-class" or "aspirational" customer. So I guess the editors of the WSJ are just out of touch ... :confused1:
http://online.wsj.com/article/SB119456835990487306.html
[URL="http://online.wsj.com/article/SB120044885287093167.html"]http://online.wsj.com/article/SB120044885287093167.html[/URL]
Click to expand...


I suppose then we will just have to agree to disagree. :yes:
 
#95
The ironic thing about this whole situation is that ever since Chanel increase its price, more people are buying Chanel. I'm saying this for the Chanel lovers and people who recently switch from another brand to Chanel. A great example is that i now see more people are visiting this forum. On the average its about 90-100 people viewing, compare to before, about 50-60. Chanel price increases, get people to talk about them. It's like "Hey! get the bag before it go up again." Sorta like a publicity stunt. But we're the one that get hurt, not them.
Click to expand...

I agree with you. If the style is right, then there will be buyers regardless of the price. I've seen this Chanel forum grow in the past year and just look at all the people wanting to get on waitlists for the new s/s 08 bags....myself included. Chanel will not suffer as long as they have hollywood and TV to promote their products. TV shows like... the hills, the devil wears prada, sex and the city, etc., everyone wants to have the bags/accessories they see on TV. It's great publicity and advertising.
Personally, I won't quit buying Chanel, but I won't be buying 3 to 4 bags per year anymore...maybe 1 or 2.
 
#96
^ita...looks like chanel is forming a market trend where the price (increase) dictates the demand. when i first read this thread, i ignored this because im thinking this may be just another speculation...haven't they just increased the price last november (at a ridiculous rate?). but it's not about the target market anymore (ie super rich people, celebrity, or even middle class customers). even if the prices keep going up, people will still keep buying, others more, others less, but for sure there are those who still still buy. either way, chanel profits and creates another level of "exclusivity" here....are they going to increase their price every season? every collection? i really can't understand the rationale behind it. but if the price increase are true...i don't think im going anywhere even thinking about owning a chanel EVER.
 
#98
Even rich" people tune into where they put their money in a recession cycles.
I think it's an incorrect assumption that middle class people can't afford a Chanel. They may well choose to save that $3K, $6K or whatever they would allot for purses or non-essentials so when the market bottoms out, they invest those funds. It would certainly be a wise to buy into the stock market on the bottom rung than purchase Chanel.

Here's an interesting thought: How many bags are those rich folks going to buy -- as many as what we in the middle class purchased? Seems like that's risky to assume that will occur. Add in the fact the middle class is shrinking (studies conducted by foundations and public interest groups). Does that mean there are more wealthier folks? Don't think so.

It will be interesting to see how this shakes for Chanel. I'm not an economics major but common sense tells me their decision to hike prices given the economic climate is ill timed to say the least.
 
#99
hi girls, don't you think there's already an increase since the new bags cost more than those of the same style last season? if on top of this there's yet another increase, i'd really be sad and angry.
 
#100
NOTE: The following are excerpts from an article.


"EVERYONE’S talking about the bubble, and when it will burst.
There is too much inventory. Prices are absurdly high. And analysts are predicting a slowdown in a market that may have already passed its peak of irrational growth, in 2004. Even as prices have increased exponentially over the last three years, with buyers trying to get in on the ground floor of premier properties — the Paddington, the Muse, the Giant City — so, too, have reports of dwindling consumer confidence and a looming credit crisis that could potentially wipe out the value of Uptowns and Downtowns alike.

Some people are concerned that a combination of volatile interest rates and the weakened dollar will ultimately cripple the market.

Status handbags, you see, are a lot like housing. After the rise of the $1,000 purse, fashion’s equivalent of the $1 million studio, there inevitably comes talk of a backlash. Are we now living in a handbag bubble?

“Designers are just testing the laws of economics by pricing handbags higher and higher until people stop buying them,” said Lauren Goodman, the fashion director of Domino magazine.

“The luxury market is so over the top now that it is demented."



Is This It for the It Bag?
http://www.nytimes.com/2007/11/01/fashion/01BAGS.html?_r=4&pagewanted=all
 
#101
Layla -- thanks for the article. People don't have much of a choice when it comes to paying big bucks for gas, food and other necessities. They do have a choice in the non-essentials. The stats came in on the holiday spending figures and it was no surprise to moi that spending was down. One didn't get that impression, though, during the season from the news media.
 
#105
:crybaby::crybaby::crybaby::crybaby:
I have to post here again.....

Price increase from Feb 2008
I just came back from Chanel boutique - HK Canton Rd. My SA told me the price will increase 10-20%. New price will start at 1st FEB.

Hope its only for HK.
 
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