A Chanel bag is certainly an investment. Their bags don’t really tend to cost less than £4,000, and most of the time, they are even more than that. Buyers want to get their hands on designer handbags for many reasons, maybe they like the design, they like the exclusivity of an item, or they want to invest in a bag instead of investing in something more traditional like stocks. The problems occur when designer labels, like Chanel, choose to increase the price of their items. When brands do this, it often results in the demand for an item increasing too, as fewer people can get their hands on it.
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The popularity of Chanel bags
The Chanel Flap bag is one of the most recognisable designs on earth. You might know absolutely nothing about Chanel as a brand, but you could probably recognise a Flap bag. This bag actually altered history forever, with its iconic shoulder strap. Previous to this design, women’s handbags didn’t have this kind of strap, meaning they would have to be carried in their hands. The shoulder strap introduced a different dimension. Women could now have their hands free to do other things while carrying a bag. Although it’s something we probably don’t think about nowadays, it was revolutionary at the time.
What is the reason behind the price increase?
Nobody knows the real reason behind the price increase, but some speculate that it’s because of economic factors, or the fact that Chanel wants to keep upping the price of their bags until they reach Hermès Birkin status.
The Chanel price increase over the years
The Chanel price increase has become something that happens multiple times a year. It’s always been this way. However, over the last few years, we’ve seen a more extreme price increase than usual. Here’s a brief timeline of what the price increase looks like in more recent times.
2019 – 2020
In late 2019 and early 2020, the coronavirus pandemic hit most of Asia and took hold of surrounding countries too. This presented a massive problem for Chanel as 55% of their revenue that year came from the regions of Asia. Not only this, but Chanel had paid a lot of money to create a seven-story shop in Seoul, South Korea. As Covid-19 continued to rip through Europe and America too throughout 2020, their stores were told to close, leaving them only open for online revenue. Throughout the lockdowns Chanel’s production staff were also told to stay at home, after all, they weren’t essential workers. As you can imagine, this slowed Chanel’s production down quite significantly.
2021 – Now
Although it seems as if the economy is slightly recovering now, that may not be the case. Like a lot of businesses during the pandemic, Chanel got rid of a lot of staff. Chanel is in the process of recovering from the effects of the pandemic (aren’t we all). This means they have to make up for all the missed production and selling opportunities. You can probably see where this is going. Yes, another price increase awaits.
Are the prices justified?
The price of a Chanel Flap bag is justified if you think it’s a bag you will get a lot of use out of. If you’re looking for an investment bag, the Flap bag should also provide you with a solid investment. 2022 could be a great time to sell your Chanel bag too before prices settle in a couple of years post-pandemic. Chanel is a brand that most people know, so if you can get your hands on one, then it’s a win-win situation.
Is 2022 the year to invest in a Chanel handbag?
Some may argue that if not now, when? The price of Chanel handbags, especially their Flap bags, is only expected to rise in the coming years. The danger of leaving it a few years is that it most likely will increase in price, maybe even so much so that it goes out of your budget. The point is, if a Chanel Flap bag is your dream bag, it’s best to invest in it now before it becomes too expensive.