Price hikes at a time of global economic devastation? It’s happening in luxury. As reported by WWD’s Tianwei Zhang on Tuesday, with luxury shopping reopened in China, some brands are increasing their prices, none more dramatically than Chanel. Rumors across social media that significant increases would soon go into effect sent shoppers racing to Chanel outposts in Beijing, Shanghai, Guangzhou and Hangzhou in search of pre-markup acquisitions.
Chanel confirmed the price hikes to WWD. They range from 5 to 17 percent in euros, and apply to “a small portion” of the house’s handbag and small leather goods offerings. The changes go into effect over the next couple of days in China, and are not limited to China. In keeping with Chanel’s policy of global price consistency instituted several years ago, adjustments have been or will be instituted around the world. Any increases above 17 percent reflect currency and exchange rate fluctuations. The price hikes apply only to the iconic 11.12 and 2.55 handbags as well as the the Boy, Gabrielle and Chanel 19 bags and some small leather goods. Prices on seasonal bags, ready-to-wear and shoes will not be impacted, nor will fragrance and beauty.
Chanel is not alone in upping prices