Chanel raises handbag prices as Christmas approaches
MILAN, Nov. 4 (Reuters) – French luxury group Chanel has raised the prices of some of its most sought-after handbags at a time when high consumer demand and low stocks approach the period of the celebrations reinforce their exclusivity.
Private company Chanel, one of the biggest brands in the € 280 billion ($ 340 billion) global luxury industry, and rival Louis Vuitton, owned by LVMH, have weathered the coronavirus crisis better. than most other retailers and have raised their prices several times to increase their profit margins.
Chanel’s sales fell 17.6% last year, but the base profit margin stood at around 20%, analysts said, making it one of the most profitable companies in the industry. He said in June that he expects revenues to increase double digits this year from their pre-2019 pandemic levels. Read More
The price of Chanel’s Small Classic handbag has risen 16% to 7,300 euros ($ 8,429) since the end of September. The increase, first reported by French news channel BFM TV, was confirmed by Reuters using the Internet Archive, a repository of old web pages.
The price of another popular handbag, the 2.55 quilted leather with a golden chain, was 7,800 euros on the Chanel site on Thursday against 6,050 euros in December 2020, an increase of almost 30%, according to Reuters analysis.
A spokesperson for the group, also known for their tweed suits and No.5 perfume, said in an email that the price hike “only affects our iconic models, namely the Timeless Classic and the 2.55”.
Like all major luxury brands, we regularly adjust our prices to take into account changes in our production costs and raw material prices, as well as fluctuations in exchange rates, ”said the spokesperson, without give more details.
Price adjustments are made in such a way as to avoid excessive differences between regions, the spokesperson added.
In June, Chanel’s chief financial officer told Reuters that the group had yet to raise prices in 2021, but that could change in the second half of the year, in line with its policy of revising prices around the world twice a year. .
($ 1 = 0.8660 euros)
Reporting by Silvia Aloisi; Editing by Elaine Hardcastle
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