Chanel Suing The RealReal over Fakes

Scary - hard to know who to trust anymore. I've come to love vintage Chanel more than the current offerings, finding the real deal is going to be even harder. I mentioned the lawsuit on here a while ago but glad to see others expressing their thoughts. So now where to buy!!??
 
Scary - hard to know who to trust anymore. I've come to love vintage Chanel more than the current offerings, finding the real deal is going to be even harder. I mentioned the lawsuit on here a while ago but glad to see others expressing their thoughts. So now where to buy!!??
Buy the same places but get things authenticated before purchase. Don't trust any seller or website, even if they guarantee authentic. All that means is that they will give your money back if you discover it is fake. It doesn't mean they prescreen everything and authenticate before listing. The majority of online listings are authentic.
 
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Irrc It used to be the case that you could sent any Chanel back to the factory for Refurb and they would not take fakes , So any vintage channel with a receipt from a factory Refurb was as good as a channel with a purchase receipt . (At the time receipts and cards were only faked on “new genuine” goods )

I was still dubious when buying vintage channel as anything is possible in regards to faking it , and if it “passed” the factory test it was no longer a fake ... mmmmm........

Allthough it was in every bodies best interests , Was kind of disappointed when the local Chanel store told us they were no longer offering the service regardless of whether it had been to them before , but suspected then they felt where getting “used” as the fakes where getting that good so had shut it down for everybody .

Luckily (or unluckily for a guy that hates the mall ) I got to know a lot of the sales people as every time I shopped at Chanel Bank of America put a hold on my card so I spent way too much time hanging around while boa re-activated it so the sales people felt pity for the grumpy looking guy :biggrin: and let me know a little secret or two .

The new stuff ive bought is obviously genuine , and every vintage item is guaranteed genuine .
Apart from one evening bag that was only bought as it was a bit weird and quirky , that as far as I know is that weird and quirky it has still never left her closet . :biggrin::biggrin::biggrin:
 
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I just did a quick search , but could not find the story I was looking for so offer the link below instead .
The story I remember reading was that a factory producing fake Chanel perfume was busted (iirc in Italy) and when the experts went in to gather evidence it was found to be newer , better equipped to make the product , and cost more to build that the place making the genuine stuff !!!

I’m sure that new story is still out there , but don’t have time .

http://www.thefashionlaw.com/home/the-big-couture-rip-off
 
Chanel can't have it both ways. Either there is going to be a reseller market and unfortunately there will be very good fakes that will occasionally be included and have to be corrected on a case by case basis.

Or Chanel needs a certification program where professional resellers have access to the entire Chanel serial number database and can authenticate based on their certifications. And only Chanel certified resellers will be legally allowed to resell pre-owned Chanel items.

They need to pick one or the other. Because it's never going to be illegal to resell any fashion item I own regardless if it's from H&M or Chanel. That market will never be eliminated. Nor should it. But if Chanel wants total control of their brand and specifically want other companies to meet certain standards, then they need to create a legitimate corporate reseller program.
 
Thats the problem .
Would you put your name and reputation on the line to validate somebody reselling your goods ?
Once the trusted resellers get called into question so does your reputation by endorsing them .

Why worry about resale value on a product you have already sold ??????

Vintage Chanel will allways have a market .
New Chanel will allways have a market .
They both compliment one another .
Chanel only sell new , so why risk the business by getting involved with anything else that cannot be verified ?

In the car world it’s known as CPO . certified pre owned .
Cars that a dealer will sell alongside new models that are certified as genuine accident and incident free cars with proper service history etc.
I have bought one in the past from porsche , brought back to “new” car specs and conditions at great expense to them and came with a warranty greater than the “new” version would have .
You cannot buy this on the used car market , even from a main dealer (porsche dealer only thing) though many other brand dealers do try there luck ....

It is not the right decision for everybody , but I agree 100% with chanel’s Stance on this .
 
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Irrc It used to be the case that you could sent any Chanel back to the factory for Refurb and they would not take fakes , So any vintage channel with a receipt from a factory Refurb was as good as a channel with a purchase receipt . (At the time receipts and cards were only faked on “new genuine” goods )

I was still dubious when buying vintage channel as anything is possible in regards to faking it , and if it “passed” the factory test it was no longer a fake ... mmmmm........

Allthough it was in every bodies best interests , Was kind of disappointed when the local Chanel store told us they were no longer offering the service regardless of whether it had been to them before , but suspected then they felt where getting “used” as the fakes where getting that good so had shut it down for everybody .

Luckily (or unluckily for a guy that hates the mall ) I got to know a lot of the sales people as every time I shopped at Chanel Bank of America put a hold on my card so I spent way too much time hanging around while boa re-activated it so the sales people felt pity for the grumpy looking guy :biggrin: and let me know a little secret or two .

The new stuff ive bought is obviously genuine , and every vintage item is guaranteed genuine .
Apart from one evening bag that was only bought as it was a bit weird and quirky , that as far as I know is that weird and quirky it has still never left her closet . :biggrin::biggrin::biggrin:
OMG! Don't you hate that? Bank of America goes overboard with their fraud protection. My purchases are always getting denied and I have to call to tell them it is really me and not some thief using my card. It is embarrassing.
 
If you know you’re going buying , you can call boa first and tell them you’re going to Chanel .
But even then it’s not guaranteed to be glitch free
The store with the brown paper bags have given me problems too .
after you’ve been declined and either called or replied to the text , you need to give it 10 mins or so before you try again even if boa say you’re all good .
I can’t remember the exact details (maybe a limit on rejections in a day) , but one time something went wrong and I was told I had to go back to Chanel the next day .
I was saying “no I’m not coming back , you can’t make me come back , please don’t make me come back to the mall , I hate the mall” :biggrin:
I left all my details , and it was bought over the phone the next day leaving me free to lounge around at home whilst she went back to the mall to collect her thing .:cool:
 
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I just heard that Chanel is suing the RealReal over allegedly selling 7 fake bags:

https://www.google.com/amp/s/wwd.co.../chanel-is-suing-the-realreal-1202911368/amp/

I also just saw The ChicProfessor’s YouTube video about this in which she argues that Chanel is trying to shut down the secondhand market.

Thoughts?!

I’ll validate the opinion that Chanel is trying to shut own the second hand market. I work in high end; all brands are complicit. Competing with yourself is expensive. It’s also the reason for the drastic price increases.
 
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I’ll validate the opinion that Chanel is trying to shut own the second hand market. I work in high end; all brands are complicit. Competing with yourself is expensive. It’s also the reason for the drastic price increases.

I don’t get that. How do you compete with the second hand market by increasing your prices, so that the same bag costs much more in store than ‘as new’ online? Plus, it makes more sense to sell your bag if you can sell it for the same (or more) than what you bought it. I thought the price increases have fueled the preloved market...
 
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I don’t get that. How do you compete with the second hand market by increasing your prices, so that the same bag costs much more in store than ‘as new’ online? Plus, it makes more sense to sell your bag if you can sell it for the same (or more) than what you bought it. I thought the price increases have fueled the preloved market...

Let’s say you want a new handbag. The current price is $6200 for a jumbo. You think “OMG THAT WAS THE PRICE OF MY FIRST CAR, NO WAY”

So you go looking for a used handbag. You’re kind of terrified of eBay and Craigslist (rightly so) but come across a few websites that not only have your handbag, but the shipping is free, you never have to walk into a store, 100% authentic, money back no questions asked and the best part, it’s $2000 less than the new one and only two years old but in NEW condition. SOLD!

Online businesses have a distinct advantage over brick and mortar. Low overhead costs.

High end has huge operational and management costs.

Using the previous example, someone bought that handbag two years ago from a Chanel boutique, for full retail price. Chanel pockets the margin (their jumbo flap costs them $427 to make - a Birkin costs $800 in case you’re wondering) and can cover their costs. Best of all, because someone walked into the store, they most likely spent more money than they originally intended to. Thanks, predatory sales practices! BUT Chanel has to pay to manufacture, transport, import, market and sell the handbag. On top of regular operating expenses like leases and utilities and salaries. Their margin suddenly isn’t so big. High ends largest expense isn’t their products but their marketing.

Now, a pre-loved online vendor takes in that piece. Let’s say that the original owner actually paid $6200 plus tax for it. Pre-loved offers them $3500. Then they mark it up to $5500 to sell it. In most cases it sells 12 days after the first 10% price drop. Pre-loved pockets $2k, less shipping and administration. But what happens when that same handbag comes back? 74% of pre-loved handbags end up back in consignment in under 10 months. Pre-loved offers a buyback of $3000, marks up again to $4200 and makes another hefty profit. They don’t have a store to run, they’re paying a small digital agency to run their website, but they don’t have to advertise and they don’t own any IP or a proprietary product. If Chanel’s margins are 18.9%, Pre-loved is pulling down a 83% margin. That’s big business. And folks will come back over and over again because they never have to leave the comfort of their own home, be made to feel out of place at a boutique. Notwithstanding the fact that most people don’t even have a boutique within 16 miles of their primary residence.

TL; DR High end wants to shut down pre-loved because it’s cutting into their margins and messing with their business model.
They’re also a bunch of snobs who think that people looking for a discount don’t deserve to have their stuff

Source: This is what I do for a living
 
Let’s say you want a new handbag. The current price is $6200 for a jumbo. You think “OMG THAT WAS THE PRICE OF MY FIRST CAR, NO WAY”

So you go looking for a used handbag. You’re kind of terrified of eBay and Craigslist (rightly so) but come across a few websites that not only have your handbag, but the shipping is free, you never have to walk into a store, 100% authentic, money back no questions asked and the best part, it’s $2000 less than the new one and only two years old but in NEW condition. SOLD!

Online businesses have a distinct advantage over brick and mortar. Low overhead costs.

High end has huge operational and management costs.

Using the previous example, someone bought that handbag two years ago from a Chanel boutique, for full retail price. Chanel pockets the margin (their jumbo flap costs them $427 to make - a Birkin costs $800 in case you’re wondering) and can cover their costs. Best of all, because someone walked into the store, they most likely spent more money than they originally intended to. Thanks, predatory sales practices! BUT Chanel has to pay to manufacture, transport, import, market and sell the handbag. On top of regular operating expenses like leases and utilities and salaries. Their margin suddenly isn’t so big. High ends largest expense isn’t their products but their marketing.

Now, a pre-loved online vendor takes in that piece. Let’s say that the original owner actually paid $6200 plus tax for it. Pre-loved offers them $3500. Then they mark it up to $5500 to sell it. In most cases it sells 12 days after the first 10% price drop. Pre-loved pockets $2k, less shipping and administration. But what happens when that same handbag comes back? 74% of pre-loved handbags end up back in consignment in under 10 months. Pre-loved offers a buyback of $3000, marks up again to $4200 and makes another hefty profit. They don’t have a store to run, they’re paying a small digital agency to run their website, but they don’t have to advertise and they don’t own any IP or a proprietary product. If Chanel’s margins are 18.9%, Pre-loved is pulling down a 83% margin. That’s big business. And folks will come back over and over again because they never have to leave the comfort of their own home, be made to feel out of place at a boutique. Notwithstanding the fact that most people don’t even have a boutique within 16 miles of their primary residence.

TL; DR High end wants to shut down pre-loved because it’s cutting into their margins and messing with their business model.
They’re also a bunch of snobs who think that people looking for a discount don’t deserve to have their stuff

Source: This is what I do for a living

I see the reasons for Chanel wanting the pre-loved market shut down (although I am not completely convinced by it. My feeling is that if they were not persuaded they could easily sell their store-bought items in the 2nd hand market without incurring loses, much less people would buy Chanel bags).

But I still don't see how frequent price increases are devised as a weapon to fight the preloved market? On the contrary, as you very well explain, the higher the increase the higher the price the 2nd hand dealer can fix for their item without their costs increasing one penny, so that it all goes to the margin. So the dealer has to love each price increase...
 
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