When it comes to luxury goods, specifically the big three—Chanel, Louis Vuitton, and Hermès, one thing remains a given—there will be price increases and lots of them.
In the 2020s, it has been customary for Chanel shoppers to expect annual or bi-annual price increases, sometimes by nearly 20%. 2024 was no different, with Chanel kicking off the year with a fresh set of jaw-dropping prices.
No one was surprised, given Chanel’s chief financial officer, Philippe Blondiaux’s, previous promise, which signaled Chanel’s implementation of regular, bi-annual price increases “to account for currency fluctuations and inflation.”
Chanel Looks Towards the Future
Today, Blondiaux and the French House are singing a different tune following a decline in annual revenues for the first time since 2020. BoF reported that Chanel’s sales were down by 4.3% in 2024, though it’s worth noting that the House had seen unprecedented growth in the years prior.
Still, Chanel is set to open new stores in new markets despite the economic downturn and continued slowing of the luxury market. This year, the brand will focus more on its investments than aggressive price hikes ahead of new creative director Matthieu Blazy‘s fall debut.
Like many other luxury brands, Chanel is currently in a transitional period. However, despite the odds and decreased revenue, it still saw growth under the design direction of its in-house creative studio, and Blondiaux stated that ready-to-wear was one of the brand‘s fastest-growing categories last year.
Will Chanel Lower Its Prices?
While Chanel won’t be lowering its prices anytime soon, consumers will see some relief regarding the cost of leather goods. In fact, the growth within the ready-to-wear categories signals pricing fatigue elsewhere, leading Chanel to dial back on its pricing strategy.
As mentioned above, Chanel saw astounding price increases of as much as nearly 20% in the post-pandemic world. In recent years, they’ve dialed it back, increasing prices more in line with inflation. Blondiaux stated that 2024’s average price increase was around 3%, further emphasizing its plans to keep price increases more in line with global inflation.
The statement is almost vindication for consumers who long argued that Chanel couldn’t blame its price increases on inflation alone. Still, pulling back on price increases doesn’t signal a halt in them altogether, and price increases remain inevitable, no matter how small.
I don’t think there’s any mention of a price decrease in this article except for the title!
Total clickbait! The only reputable place that I’ve found lowering prices is on Lozuri. Sometimes they’ll have Chanel but they sell out quick. I get notified in email.
This article is what one calls click bait
It was really not necessary to increase prices like crazy.Greediness is a one to blame,same with others high end companies. Exclusivity doesn’t have to cost arms and legs.Even people who don’t count consider this strategy ridiculous.
Agreed!!!!!
After enjoying buying their bags occasionally since 2000, I reached a point of “Chanel Purse Peace”. Then the prices started zooming forever upward, and I must say I really soured on Chanel when they had the audacity to gouge their prices in the middle of the Pandemic shut-down. I know lots of folks shopped online during the shutdown as a kind of coping mechanism (I much prefer the physical game of the hunt in retail/vintage stores, so, shockingly, this didn’t happen to me…) But I thought having a huge price increase in the middle of a plague was the height of Bad Taste, which you’d think the French would eschew, since they like to think of themselves as the Epitome of Good Taste. (Like, I don’t think you can even order Chanel online, right..?) But I digress…. I do love the look of Chanel, the aesthetic, and I’d be lying if I said I wouldn’t be thrilled to have a Chanel tweed jacket, but the prices of all things Chanel give me a nosebleed nowadays. Chanel couldn’t give a rat’s ass what we all think, anyway: they’re still selling to the 1% of the 1% and doing just fine.
China makes Chanel Goods! Factz, and I will continue to buy…. Authentic Calfskin leather sneakers, bags etc. Top Tier 12AA Quality Craftsmanship. Never miss! I’m ‘”NEVER”” in life paying a MF/Price tag that ridiculously High, AF. When China Factorys are making chanel for Chanel. B$tch Please!
They would not need to lower their prices if Karl Lagerfeld was still designing. Their clothes and accessories have been really blah and there has been a drop in overall quality customer service not to mention products. Chanel’s prices never were equal to their quality after 2012 but the designs and quality under KL was great. Their primary customers do not care about about a thousand in price increases.
Since’s KL’s passing some of the magic has gone and too many copy cats are offering great quality interpretations like Oscar de la rentals tweed pieces, YSL etc.
If their designs and quality was the same as it was in 2009 there would be no decrease in demand because there are no real substitute products in the market.
Chanel cannot sustain their high prices for mediocre designs and lower quality hence the shift in demand.