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 guidance was issued as the French group released first-quarter sales that confirmed forecasts for a slowdown. Weak demand in China and poor performance at flagship Gucci are weighing on the group.
Consumers face less, not more, choice if handbag brands can't scale up to compete with LVMH, argues Andrea Felsted.
As the French luxury group attempts to get back on track, investors, former insiders and industry observers say the group needs a far more drastic overhaul than it has planned, reports Bloomberg.
After growing the brand’s annual sales to nearly €2.5 billion, the star designer has been locked in a thorny contract negotiation with owner LVMH that could lead to his exit, sources say. BoF breaks down what Slimane brought to Celine and what his departure could mean.