Some designer handbags have seen an exponential spike in price over the previous few years.
Chanel and Louis Vuitton, for example, have recently raised the prices of some of their trademark bags. In November, the former stunned the market by raising the price of its renowned Medium Classic Flap bag for the third time in 2021.
According to reports, the Medium Flap Bag cost $6,800 in January 2021. Chanel raised the price to $7,800 in July. The bag's price has now risen to $8,800, nearly matching the starting price of Hermès' coveted Birkin bag.
In the United States, the price of Chanel's Medium Flap Bag has risen since November 2019, has increased by 60 percent, according to data compiled by the Jefferies Group, an investment banking company. Its larger counterpart, the 2.55 bag, also increased, to $9,500. In June 2021, the 2.55 was reportedly $7,400.
The price of the French luxury house's other signature bags, such as the Boy, Gabrielle, and Chanel 19, has also risen by 10 to 15%.
The price of Louis Vuitton's iconic purses has been rising, with the popular Pochette Accessoires Monogram Canvas going from $630 in early 2021 to $1,050 as of this writing. According to reports, the label raised prices at least twice in the last year.
Since the pandemic began in March 2020, Chanel has hiked the price of its handbags four times, according to Sotheby's. In an effort to make the label more exclusive, the label has set a limit on how many bags a consumer can buy per year, similar to Hermès' method, however limits may vary depending where they are purchasing from, whether it be New York, Shanghai or Paris, among others.
It's no secret that the cost of desirable designer goods has risen over time owing to inflation and other causes. Chanel's Medium Flap Bag was rumored to cost $1,150 in 1990. The handbag cost $220 when it was initially produced in 1955.
Designers frequently increase their prices year after year to account for rising material and labor costs. Prices were raised in 2021 to compensate for losses incurred the previous year as a result of the pandemic, particularly a major drop in foreign sales from frequent clients such as those from China.
Despite the considerable price hikes, the company's customer base does not appear to be shrinking. Chanel is a brand that continues to hold its high worth in the resale market and that aspect is unlikely to change.
