Why are Chanel Bags Expensive in 2023?
You may be wondering, why are Chanel bags expensive? It seems like every time we turn around, there is another price increase with Chanel. Well, this wasn’t always the case. Today, Chanel bags are expensive due to the fact that they are trying to compete with Hermes to be a more exclusive brand, the new microchip authentication, and inflation.
Why Are Chanel Bags Expensive in 2023?
Let’s just jump right into why you came here, why are Chanel bags so expensive. In 2020, Chanel saw an opportunity with to “protect their margins due to covid” and seized the moment, by increasing their Classic Flap bags by 21%. But it didn’t stop there, year over year Chanel prices continued to increase.
Here is why Chanel bags are so expensive in 2023. Many people will argue that it’s because of the quality, the brand name, the craftsmanship. Sure, that all plays a role in why are Chanel bags so expensive. In my opinion, one of the key reasons Chanel bags are so expensive in 2023 because they are trying to become a more exclusive brand.
The second reason we see such an increase in Chanel price is due to the fact that they implemented a new authentication process called microchipping. Each bag comes with a microchip that can only be authenticated by Chanel. This system is expensive, and those costs are passed on to consumers.
The final reason Chanel bags are so expensive and continue to raise their prices is due to inflation. According to the US Inflation calculator, inflation has increased by 7% in 2021 and 6.5% in 2022. Chanel has adjusted their pricing accordingly. This is why many people purchase vintage Chanel handbags. Shop Preloved Vintage Chanel handbags.
Is Chanel trying to Compete with Hermes?
The Short answer is yes, Chanel is trying to compete with Hermes. While, Chanel won’t come out and say it directly. The evidence points to this new strategy that is closely modeled off the process of buying a Hermes bag. Chanel's customers are now limited to buying 2 Chanel Classic Flap bags a year. The timeless Chanel's bags are often sold out or unavailable in stores, causing the urgency to get your hands on a Chanel bag up.
Similar to Hermes, Chanel is trying to limit who can purchase a bag, controlling the supply to increase the demand for their bags. Finally, the last reason, is both Chanel bags and Hermes Birkin Bags and Hermes Kelly bags are all now roughly the same price.
Did Chanel price themselves out of the market?
Another popular questions I received about Chanel is: Did Chanel price themselves out of the market? The answer is No, Chanel sales have not slowed down since the price increases. I do think they eliminated impulse buying. Given the price of a Chanel Classic Flap bag of almost $9k, I definitely think they are trying to target a new demographic of luxury shoppers. Which is why I love shopping for Vintage Chanel bags!
One thing that the Chanel price increase has done, is really get people to talk about the brand Chanel. Chanel is talked about more now than ever before. In Paris, NYC, and Singapore, I’ve seen photos of massive lines outside the store of people lined up to get their hands on a Chanel bag. People are lined up to buy the classic Chanel flap bags, and also the novelty bags such as the Chanel Heart bag. While, the short term gain has been great for Chanel, only time will tell what is in store for them in the long term if they continue down the path of crazy price increases.
Is a Chanel bag still Worth Prices?
I adore Chanel bags, I will be the first one to talk about how it’s such a timeless piece that can easily be styled. A classic Chanel bag that can be worn for both an evening out and a daytime bag.
Yes, I think a Chanel bag is still worth purchasing, but I don’t think it’s worth purchasing at full retail price. Which is why I recommend that you purchase your luxury Chanel bag on a reputable vintage website. With that being said, it’s so important that when you are shopping at a preloved site, you're sure they have a rigorous authentication process, store their preloved bags in a good environment, and take care of the bags from the time received to the time someone purchases one. With that being said, the best places to buy preloved Chanel handbags include: TheRealReal, What goes Around Comes Around NYC, and Fashionphile.
Final thoughts on Why are Chanel Bags are So Expensive
Chanel will continue to raise its prices, especially on the classic handbags, which is why I always recommend and tell people if you are thinking about purchasing one it's better to get it today because tomorrow it could go up in price. It’s hard not to get discouraged with Chanel’s price increases, which is why I love purchasing luxury bags on the preloved market. There are so many incredible vintage Chanel bags selling at a fair market value. I'd love to hear in the comments, why do you think Chanel is so expensive?
Sincerely Petite in Paris,
Diane
