Breaking news, Chanel lovers!

Just after Chanel revealed earnings for the first time in its 108-year history, prices of select handbags are increasing on July 1, 2018 in all US Chanel boutiques. It’s no secret that Chanel handbags go up in value. But how much will they increase? Keep reading to find out.

This month, the privately-held French fashion house Chanel revealed that the company had $9.62 billion in sales for 2017, up 11 percent from $8.63 billion the year prior.

We think handbags had something to do with it: in November 2017, Chanel Classic handbags saw their first price increase since May 2014.  Now, Chanel is at it again and even more bags are facing a dreaded price increase. The brand knows that people will continue to buy as long as the name Chanel is on it.

Chanel Chief Financial Officer Philippe Blondiaux that Chanel is able to “remain independent” and “focus on the long term and now we know how: by raising prices.

Price increases are inevitable. With inflation and cost of living increases, the cost of labor and materials rising, the items we love should go up in price to make sure everyone involved in making that luxury item is treated and paid fairly.

When we heard Chanel was raising their prices again, we knew we had to dig in a little deeper. We did our research using info from Chanel Sales Associates, PurseForum and in Facebook groups. As far as we know, this price increase will affect only the United States.

---

Which Chanel Collections are facing a price increase on July 1, 2018?

• Reissue 2.55 with black hardware
• Gabrielle collection, all sizes (prices expected to increase $300)
• Coco Handle collection (prices expected to increase $500)
• Urban Spirit Backpacks (prices expected to increase $400)
• Deauville Leather Tote (prices expected to increase $700)
• Coco Cocoon
• Classic Shoes

One of the bags facing an increase the Gabrielle bag, which has earned its spot as a top seller in Chanel boutiques and in the resale market. The price of the Gabrielle just went up in February 2018 (for example, the Small Gabrielle Bag, was $3200 and increased to $3,600), and now they are going up again. Our assumption is that the Gabrielle will be updated to a Continuous Classic like the Boy was.

We also aren’t surprised by the Coco Handle price increase. It’s been on our wishlists for months, but they’re extremely hard to get due to their popularity and the resurgence of the top handle bag.

There could be a price increase for Chanel Boy bags on July 1 too. In a Chanel subgroup on PurseForum, a Chanel lover (pinkrose398 from MaddyLoves.com) said her sales associate said Boy bag prices “may” go up, but that he was not certain or not able to confirm the news publicly. In January 2018, PurseBlog reported that the Chanel Boy would see price increases around May. Will the Boy’s price increase?

We’ll update this page as we find out more info.

---

Why does Chanel raise prices?

We think there are a few reasons. First and foremost, to make money. While we can’t say for certain, there are rumors that Chanel is working on consolidating all business practices under Chanel Limited. If they’re looking to expand, they need to increase their profits.

Another reason? Inflation and basic economics: more demand means higher prices. It’s rumored that there is 2+ month waiting list for certain classic styles like the Chanel Mini, so Chanel will continue to increase prices; the demand is there so they sort of need to. The more people are paying for them, the more value Chanel bags have.

Next, the cost of material and labor increases over time. If Chanel is paying a higher price for the lambskin leather, they will compensate the loss with your wallet. The cost of labor has gone up too, a Chanel bag is probably made in France, Italy or Spain by very skilled artisans.

We also know that this is a marketing strategy. Price increases should drive customers away, but for Chanel and brands like Hermes, it works the opposite. Exclusivity makes people want something more.

It’s important to note here that Chanel is just one brand and it netting nearly as much money as the two other luxury conglomerates, Kering and LVMH. Kering, which owns brands like Gucci, Yves Saint Laurent, Balenciaga, and Alexander McQueen, reported revenue roughly $17.92 billion across all of its businesses in 2017. The French conglomerate LVMH, which owns Dior, Louis Vuitton, Céline, Givenchy, and Marc Jacobs, achieved $15.47 billion in sales in 2017 with its fashion and leather goods.

---

Not happy about price increases? Buy pre-loved!

You can buy preloved Chanel handbags from a place like Yoogi’s Closet (every item comes with an authenticity promise). Depending on what you want, you can get something amazing and almost new for way less money. As the retail price of a bag increases in value, the price of the same bag but pre-owned increases as well. The value of pre-owned is determined by the condition of the bag, meaning you can get an almost new bag for less money.

Do price increases make you more likely to buy new or pre-owned Chanel? Do the price increases scare you? Let us know in the comments or on Facebook.