Chanel rations bags to interest ultra-rich customers
Luxury bag brands are enforcing more rules than ever to keep their products exclusive – from Chanel rationing its most popular handbag styles to Hermès introducing a loyalty points system
- Chanel rations bags to interest ultra-rich customers
- Hermès consumers must also buy their other lines – from clothing to furniture
- The program tracks purchases in all stores, with their Hermès points determining how quickly they will be able to get a Birkin bag.
Luxury handbag brands are enforcing more rules and rationing than ever to maintain the interest of ultra-wealthy shoppers – from Chanel limiting purchases of their most popular styles to Hermès introducing a points system.
Chanel’s iconic quilted bags – beloved by celebrities and royalty – have tripled this year alone, with the price increasing by 15%.
Fighting the pandemic in style, the French fashion house’s revenue has slowly continued to rise after its 18% drop last year – with numbers doubling in the past nine months.
Now, the luxury brand has implemented a new policy that allows customers to purchase just one of each of its most requested handbag styles – the classic flap bag and Coco handle – per year.
“Some of our products are particularly sought after by our customers. In order to adequately satisfy them, we can take appropriate action locally, ”said a spokesperson for Chanel, speaking to The Telegraph.
Chanel is rationing its bags in an effort to keep ultra-rich customers interested. In the photo, stock image
The luxury brand appears to be responding to the recent success of the vintage market, which has benefited from the growing value of its most exclusive bags over time.
On second-hand resale site Vestiaire Collectived, the classic flap bag can cost up to £ 28,000, while a small Chanel Classic sells for £ 5,410.
When it comes to Hermès Birkin bags, Kate Moss has one in denim, Kelly Osbourne has one in classic black and Victoria Beckham, of course, has one in all the colors of the rainbow.
Elle Macpherson, Lindsay Lohan, Sarah Jessica Parker and Naomi Campbell are also prominent fans. Even Coleen Rooney has one in tan.
Heidi Klum out and about in Los Angeles, California on March 29, 2021 (pictured left) with her Birkin bag and on the right, Tamara Ecclestone at Heathrow Airport, London on April 26, 2012
But following its popularity, Hermès has ensured that its Birkin bag, which starts at £ 7,030 and goes all the way to around £ 200,000, remains a demand of the ultra-rich by making it almost impossibly exclusive – with shoppers out front. register on a waiting list of at least two years.
In 2004, a vintage black crocodile skin Birkin with 14k diamonds set in a white gold buckle was sold for £ 32,706 at auction in New York.
However, now buyers can only buy one of the Birkin bags after they have proven their brand loyalty and also purchased their other lines – clothing, furniture, horse riding, watches and jewelry.
The new system involves a program that notes the customer’s purchases in all of his stores, along with their Hermy points determining the speed with which they will be able to obtain a Birkin.
Elsewhere, Gucci implemented a different strategy which saw them open a pop-up on Chance Street in Shoreditch, allowing the public to purchase limited edition pieces specially designed for selected stores.
The high-end fashion brand has recreated 5,000 tiny Seville by Gucci Cadillacs in collaboration with Hot Wheels, and it looks like their ploy is working because they’re all sold out.
And when it comes to designer suits, Savile Row has limited the number of bespoke suits that each tailor is able to make.