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Bloomberg Published
March 27, 2025
A classic medium-sized Chanel flap bag has broken through the €10,000 ($10,820) barrier for the first time in Paris.
In a sign that some luxury brands are willing to keep pushing prices higher despite weakening demand, Chanel has lifted the price tag of its best-known bag to €10,300 in the French capital. That’s up about 6.2% from €9,700 earlier this year.
The fashion label behind the No. 5 fragrance typically reviews product prices twice a year, in September and March. The cost of luxury goods in Paris are widely scrutinized since the capital draws well-heeled tourists who shop between museum and restaurant visits and enjoy VAT refunds.
“Chanel prices its bags according to their cost price. The price of raw materials and production costs has been marked by constant inflation over the past year, which has led us to adjust our prices in boutiques,” a spokesperson for Chanel told Bloomberg on Wednesday.
“This increase will take effect on all markets from 27 March 2025, with an average adjustment rate of 6% in euros,” the person said, adding the rate may vary slightly as the label seeks to limit major price gaps between markets. “It’s a question of fairness for all our clients.”
In September, Chanel increased prices between 6% and 8% in markets such as China, Japan and Australia.
Exclusive luxury brands are known to enjoy strong pricing power, meaning they can apply increases without necessarily losing customers. But in the past year there have been more signs that so-called aspirational customers buying entry-level products have curbed their spending.
Chanel tends to cater to the most affluent customers, on a par with Hermes International SCA or watchmaker Rolex, whose spending power is more resilient despite an overall slowdown in demand.