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.
In the long run, luxury brands that lean into timeless products consistently outperform their more fashion-driven peers, writes Pierre Mallevays.
Sabato De Sarno, a close associate of star designer Pierpaolo Piccioli, will succeed Alessandro Michele at the creative helm of Italy’s biggest brand.
The world’s biggest luxury conglomerate is counting on China’s reopening to boost sales after quarterly growth slowed to a single-digit rate for the first time since 2020.
This week LVMH will report results, and executives may offer clues about its megabrands’ next steps under new leadership. That plus what else to watch for this week.