Chanel Doubles Down On Price Increase Strategy As Sales Soar Despite Luxury Slowdown

In the post-pandemic world, you can be sure that where there are bags, there will be price increases. There’s no greater example of this than at the House of Chanel, where twice-yearly price increases have become the bain of collectors’ existences, with fans clamoring to snag their must-haves as soon as rumors of a looming increase begin.

Chanel continuously cites inflation, currency fluctuations, and the ever-increasing rise in the cost of materials and labor for its bi-annual price increases. While the exorbitant price hikes have consistently come under fire from critics and fans alike, the strategy is working, and demand continues to grow.

High Price, Higher Demand

While the overall luxury landscape has been bleak, Chanel defied the odds, reporting earlier this week that its 2023 sales jumped to a record high. Clocking in at nearly $20 billion, the French Design House clearly benefited from the strategy, citing a 16% increase from the previous year.

Earlier this year, prices rose by 6% on average, a much smaller increase than the previous year. Still, we’re not out of the woods yet. Chanel’s CFO Philippe Blondiaux stated that fans should be on their toes for a second price increase towards the latter half of the year to adjust to the rising costs of materials.