“Do you provide luxury or accessibility? Of course, we offer both!”
For the luxury sector, should retailers raise margins by winning more customers with trinkets at accessible prices, or raise prices on emblematic bag models? The answer to both prompts appears to be “Yes”. In May, Chanel increased worldwide prices for best-selling handbags, including Boy, Gabrielle and Chanel 19 models. According to the Group, these increases do not exceed 17% (in Euros) and reflect hikes in the price of high quality leather. For Sweden, however, the price of a Square Mini bag in black lambskin leather will increase by 27%, from US$2,995 to US$3,815 (Source: Pursebop). From May 11th in Europe, this will extend to the U.S.A. from May 25th. The announcement created strong customer purchases at stores in Seoul, Shanghai, Guangzhou and Hangzhou.