Chanel Bag Prices Rise Again in 2023
While we aren't suggesting buying Chanel bags is the same investing in traditional assets, a Chanel bag maintained in excellent condition has increased in value at about 10-15% per year. If you're going to buy a luxury handbag, Chanel is one of the few brands that will most likely increase in value versus depreciate the minute it leaves the store. While the condition and the exact style and color will impact it's value over time, Chanel bag prices in the secondary market have consistently moved higher along with retail prices. Demand for bags in both retail and the secondary market have remained strong over the last 10+ years with no signs of slowing. In March 2023, Chanel raised prices again for all of its standard styles. The Medium Chanel Classic Flap is now $10,200, up 16% from 2022. The same Chanel bag is 10x more expensive now than it was in the 1990s. During the last five years, Chanel has consistently increased prices on its most popular handbag styles, from the Classic Flap and Boy Bag to the recently debuted Chanel 19.
A Luxury Price Boom
Luxury prices have been skyrocketing for decades, at over twice the rate of inflation. In a typical year, luxury brands like Chanel are expected to raise prices at least once or twice, largely in accordance with factors like material and labor costs. Moreover, price harmonization across global markets is an increasingly relevant part of the puzzle. In order to strategically increase tourist spending, luxury price tags have infamously been much higher in key Asian markets like China and Japan. Emerging from the worst of COVID-19, with customers eager to shop and top luxury players motivated to make up for lost revenues during lockdown, the Chanel price adjustments at hand are just one facet of a much greater trend in the world of luxury fashion.
The Future of Chanel Bags
Chanel handbags are highly sought-after, iconic statement pieces, and demand is always higher than supply. Thus, Chanel continues to boost the prices of their most coveted offerings, and consumers will continue to pay. Since the start of the global pandemic, Chanel has boosted bag prices four times. The first spike came in May 2020, when the luxury fashion house increased the price of certain bags – including the 11.12, 2.55, Boy, Gabrielle and Chanel 19 – from 5 to 17 percent. Just five months later, in October 2020, Chanel boosted handbag price tags an additional 5 percent. By July 1, the price of styles like the Chanel 19 would be up an additional 10 percent, and the Flap bags another 15 percent. And now, as of November 3, the Classic Flaps and 2.55’s are quoted at 12-15 percent more than they were just three months ago. In the words of the Chanel brand itself, “the price of a Chanel bag reflects not only a sense of exclusivity, but also our values. Buying a Chanel bag brings with it renowned expertise and French design, an unfailing commitment to preserve skills and craftsmanship, leading-edge innovative manufacture, and guaranteed provenance of the raw materials (leather, jewelry ornamentations, etc.).” Evidently, the price hike of select Chanel bags adds to the allure of the brand, as more expensive directly correlates to more exclusive.
Impact on the Chanel Bag Resale Market
Chanel bag prices on the resale market continue to trend higher along with higher retail prices. Some rare limited edition bags from the mos iconic collections sell for multiples of the original retail price. The days of finding a preloved Chanel bag on the secondary market for less than retail seem long over, regardless of the bag’s condition. Chanel bags on the resale market are known to maintain top resale values, and this is unlikely to change. If anything, the burgeoning demand on the secondary market helps Chanel successfully boost prices, as consumers can rest assured that there is a thriving market in place, should they want to resell in the future. It will be fascinating to see if resellers can ultimately charge Hermès-like premiums on Chanel bags (it's getting close!), as worldwide prices continue to rise.