Resellers getting Chanel items first and selling for premium

[jsmile]

I really don’t think so.

I think Chanel has made a conscious decision to raise prices by at least $1000 annually and are trying to price some people out of the brand. I think they also see what people are willing to pay on the preloved market and premiums from resellers and figure why not raise prices then. Clearly people are willing to pay it.

Also, I think they are trying to make it harder for people to flip bags / resell. Right now on the high end in the resell market I’ve seen medium classics upwards of 10k, sometimes 12k for a super coveted color. If retail ends up being that price, how high will resell go? 15k? That’s unsustainable.

After this latest increase happens, it will mean that the medium classic flap increased in price by $1300 this year alone (for “regular” hardware - $1600 for special hardware).

If that happens again next year, medium classics will be over $9,000.

And all it takes after that is one more year to exceed $10,000 for a medium classic.

That is what I predict. I really think they want to get to 10k. I don’t think they will stop there, but maybe slow down a bit…?

Imagine if they don’t slow down though, and prices continue to increase by $1000 a year indefinitely. Medium classics could realistically, based on the current rate of price increases, end up being $20,000 in ten years.

I agree. Produce less, raise price and make a larger Margin on each item.

 

[Lulumelons]

They want less people to have it. Because they only have 1 design. But look at hermes 20k people still pay. There are so many birkins on the resale market and astonishingly the most instagrammed bag.

 

[cerulean blue]

They want less people to have it. Because they only have 1 design. But look at hermes 20k people still pay. There are so many birkins on the resale market and astonishingly the most instagrammed bag.

Yup, it was alleged Chanel was "concerned that its classic flap handbag was being carried by too many people ‘without style,’"

I think many clients reconcile Hermes' astronomical prices with the fact those bags are consistently high quality (from raw materials to construction), handmade, and an great aftercare service.

I would've thought Chanel's decision to decrease production of their bags would at least allow them to be at the very least more meticulous with production and increase QC efforts, but guess not.

 

[Glitterbomb]

They want less people to have it. Because they only have 1 design. But look at hermes 20k people still pay. There are so many birkins on the resale market and astonishingly the most instagrammed bag.

Hermes is not comparable to Chanel imo in terms of accessibility. People pay double retail for Hermes bags, because to get those bags in store you usually need to build up your profile, have a good relationship with an SA, and at least a 1:1 ratio, so a bag that retails for 10k effectively really is 20k, since you have to spend 10k first to even be allowed to purchase it. And even then, you don't get a large selection of bags and you might not get the color, size, or hardware you want....you are offered whatever you are offered.

Chanel is not anywhere like that. No one should pay double retail for a Chanel bag.

 

[shoppingismyhabit]

We need to be well prepared and study resellers’ prices before buying something we like ? She is too arrogant .I admire Michelle Yew’s collection when she first posted on Facebook but later on she turned into a reseller just like Man Tou. As much as they are trusted, I wouldn’t buy from them.

 

[shopholicgirl]

We need to be well prepared and study resellers’ prices before buying something we like ? She is too arrogant .I admire Michelle Yew’s collection when she first posted on Facebook but later on she turned into a reseller just like Man Tou. As much as they are trusted, I wouldn’t buy from them.

I agree. I just posted here an IG story of an influencer who wants to return a bag but asked if someone would be willing to buy it from her instead, for a small fee. It gave me the bad feels and just turned me off because I think that's how it starts. If someone actually buys it, it may encourage her to do it again and before you know it, she becomes a reseller charging a price higher than retail instead of just returning the items she doesn't want or need.

 

[cheremushki]

I agree. I just posted here an IG story of an influencer who wants to return a bag but asked if someone would be willing to buy it from her instead, for a small fee. It gave me the bad feels and just turned me off because I think that's how it starts. If someone actually buys it, it may encourage her to do it again and before you know it, she becomes a reseller charging a price higher than retail instead of just returning the items she doesn't want or need.

What I didn't like about that was the fact that there was a "flaw" they had to fix themselves, not Chanel. And they wanted to return anyways. So it's not good enough for them but they want to turn around to sell it to someone else with small profit?? Doesn't seem to make sense nor is it sensible purchase for a future buyer.

 

[XCCX]

I still can’t get over the “get it now before the price goes up!” For older items that they already bought!!!

 

[luxsal]

I still can’t get over the “get it now before the price goes up!” For older items that they already bought!!!

Yup! I am seeing that all over Instagram.

 

[ElleA92]

 

[ElleA92]

Well, now with impending price increase on July 1st, I see so many people saying how they're just going for vintage.. and this will of course increase the already inflated prices of vintage pieces as well..

I can't imagine vintage pieces getting to the point of 7-8k.

Some already are like those vintage square minis in caviar…I have been eyeing them but just can’t justify the 7k price…

 

[M1182]

It's really funny you mention Hermes because I was just browsing on FP an there are several Very Good Birkins in the 8-11 price range... similar to what they are asking for most of their M/L classic flaps now. That is when I think the reality of this price increase really hit me. Birkin 35 or classic flap... I know my choice!

I know a lot of people say this, but the reality is Hermes doesn't sell classic flaps, Chanel does. If someone really wants a classic flap they are not going to buy a Birkin in replace of it. They are not going to buy a Lady Dior in place of it. If its the Classic Flap people want they can only get that at Chanel and people will still buy from resellers. I can see more people buying YSL as some of their bags are similar in appearance to the Classic Flap.

 

[Egel]

I agree. I just posted here an IG story of an influencer who wants to return a bag but asked if someone would be willing to buy it from her instead, for a small fee. It gave me the bad feels and just turned me off because I think that's how it starts. If someone actually buys it, it may encourage her to do it again and before you know it, she becomes a reseller charging a price higher than retail instead of just returning the items she doesn't want or need.

We've seen this happen over and over again. First the "I don't want this, ot's going anyway, do you by any chance want it". Followed by "huge response on my bag, would you like me to do that more often". And there it is, their own reseller buisness built on an social media fanbase.

Not to forget that they will say that the bag is priced a certain amount plus small fee so that the price looks reasonable. Casually forgetting that Jane Doe has a bag she either doesn't want or wants to cash in on, uses a third party and has to pay 30% to 50% to them.

These influencers are already making a profit by selling directly to their fanbase but on top of that, still want to make more profit. If this girl has no intention of being a reseller, she would have brought the bag back to Chanel so that someone else could buy the bag directly from them. Including the whole boutique experience and without an additional fee.

 

[Purrsey]

I know a lot of people say this, but the reality is Hermes doesn't sell classic flaps, Chanel does. If someone really wants a classic flap they are not going to buy a Birkin in replace of it. They are not going to buy a Lady Dior in place of it. If its the Classic Flap people want they can only get that at Chanel and people will still buy from resellers. I can see more people buying YSL as some of their bags are similar in appearance to the Classic Flap.

Yup yup. Nothing else can replace a CF. Likewise for a B and K.
My like for H has taken a back seat lately (at least during Covid). Just because the price point is getting nearer between a CF and B, it won't make me go back to H (at least not until I rekindle my passion for H).

 

[M1182]

Yup yup. Nothing else can replace a CF. Likewise for a B and K.
My like for H has taken a back seat lately (at least during Covid). Just because the price point is getting nearer between a CF and B, it won't make me go back to H (at least not until I rekindle my passion for H).

Yes, I personally do not like Birkin's , I prefer Kelly's. However, if I didn't already have a CF and got a Kelly. I would still want a CF. If your plan all along was to buy a B and it is out of price range. I don't see people getting a CF in place of it. Maybe a Peek A Boo or SDJ. Just my thoughts.