Why are Chanel Bags Expensive in 2022?
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. Sure, Chanel used to be expensive, but not as expensive as it is today.
Today, we will take a quick look back at the history, and how Chanel’s prices became so astronomical, talk about if Chanel has priced themselves out of the market, answer the most popular question I receive which is Chanel trying to compete with Hermès, and if a Chanel bag is still worth purchasing?
Why Are Chanel Bags Expensive in 2022?
Let’s just jump right into why you came here, why are Chanel bags so expensive. In 2020, Chanel saw an opportunity and seized the moment, by increasing their Classic Flap bags by 21%. But it didn’t stop there, prices continued to increase higher and higher. This begs the question, what was the CEO of Chanel trying to accomplish with these price increases? Were they trying to make Chanel more exclusive by making it so expensive? The answer that was given, was they were trying to protect their margins due to covid.
If that was the case, though, did the price of a Chanel bag have to almost double in the last 3 years? For reference, $5,800 Pricing in 2019 for Medium Classic Flap Bag; and $8,800 Pricing in 2022 for Medium Classic Flap Bag. (Vintage Chanel bags are more affordable) Here is why Chanel bags are so expensive in 2022. 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 2022 because they are trying to become a more exclusive brand. 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. With the prices between a Chanel Classic Flap bag and a Hermes Birkin or Hermes Kelly bag being comparable, which one do you prefer? Don’t get me wrong, I love Chanel and a good Chanel bag, but with prices being equal, I tend to prefer a Hermes Bag.
Did Chanel price themselves out of the market?
Another popular questions I received about Chanel is: Did Chanel price themselves out of the market. I don’t think they’ve priced themselves out of the market, 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. Even 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. Not only to buy the classic Chanel flap bags, but 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. Not to mention, a Classic Chanel bag 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 preloved 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.
Take for example, I found a Classic Vintage Chanel Flap bag priced 50% retail price, and then a Classic Chanel Mini Bag in great condition below retail price!
Recap on Why are Chanel Bags are So Expensive
In Short, the reason Chanel bags are Expensive in 2022 is a combination of a few things, such as brand name, craftsmanship, and quality. The main reason why Chanel bags are so expensive is they are trying to rebrand to be a more exclusive brand. What are your thoughts on why Chanel bags are so expensive?
It’s hard not to get discouraged with Chanel’s price increases. I totally understand, but this is exactly why I love purchasing luxury bags on the preloved market. There are so many incredible vintage Chanel bags selling at a fair market value.
Sincerely Petite in Paris,