The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
The French luxury house has upped prices for some of its most iconic bag models by 10 to 15 percent in its third round of price adjustments since the pandemic began.
The price increases, which took effect on July 1, boosted price tags on models like Chanel’s Classic Maxi Flap by 15 percent.
Rumours of a price hike saw shoppers in Seoul, Korea, queue up outside Chanel’s boutique in Lotte Department Store earlier this week.
For decades, luxury prices have risen at over twice the rate of inflation and brands typically raise prices once or twice per year in accordance with factors like raw material and labour costs. Harmonising prices across markets — luxury price tags were, for years, significantly higher in key Asian markets like China and Japan — has also been cited as a motive to capture repatriated tourist spending. But in the wake of Covid-19, boosting prices is also helping top luxury players make up for revenues lost during lockdowns and as a result of travel restrictions.
“In line with the commitments made in terms of price harmonisation, these adjustments are made in such a way as to ensure that there are no excessive price differences between the different markets where the brand is present [or] available,” Chanel wrote in an email.
The LVMH-linked firm is betting its $545 million stake in the Italian shoemaker will yield the double-digit returns private equity typically seeks.
The Coach owner’s results will provide another opportunity to stick up for its acquisition of rival Capri. And the Met Gala will do its best to ignore the TikTok ban and labour strife at Conde Nast.
The former CFDA president sat down with BoF founder and editor-in-chief Imran Amed to discuss his remarkable life and career and how big business has changed the fashion industry.
Luxury brands need a broader pricing architecture that delivers meaningful value for all customers, writes Imran Amed.