Since the outbreak, some designers have repeatedly raised the prices of their trademark handbags.

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Why Are Designer Handbag Prices Rising

The prices of several designer handbags have risen dramatically in recent years. Luxury fashion firms such as Chanel and Louis Vuitton have lately raised the pricing of several of their iconic bags. The former stunned the market in November when it announced that it would raise the price of its renowned Medium Classic Flap bag for the third time in 2021.

The Medium Flap Bag cost allegedly $6,800 in January 2021. Chanel raised the price to $7,800 in July. The bag’s price has now climbed to $8,800, almost matching the beginning price of the renowned Hermès Birkin bag.

According to a Chanel spokesman, the price rise is due to exchange-rate fluctuations, changes in production costs, and ensuring that its bags are priced similarly across the world.

According to statistics gathered by the Jefferies Group, an investment banking firm, the price of Chanel’s Medium Flap Bag in the United States has climbed by 60% since November 2019. The price of its larger equivalent, the 2.55 bag, has also risen to $9,500. The 2.55 was allegedly worth $7,400 in June 2021.

Louis Vuitton raised prices at least twice in the last, like from the famous Pochette Accessoires Monogram Canvas, which rose from $630 in early 2021 to $1,050 at writing.

Sotheby’s reports that Chanel has raised the price of their handbags four times since the epidemic began in March 2020.

Furthermore, following Hermès’ strategy, the label has restricted how many bags a customer may purchase each year to make it more exclusive. However, constraints may vary depending on where they are buying from, such as New York, Shanghai, or Paris, among others. According to Charles Gorra, CEO of Rebag, which distributes pre-owned luxury handbags, Chanel attempts to “be part of the Hermès world and less of the Vuitton andGucci world.” They’re trying to enhance their game.”

It’s no secret that the cost of desirable designer products has risen over time owing to inflation and other causes. Chanel’s Medium Flap Bag allegedly cost $1,150 in 1990. The handbag cost $220 when it was initially produced in 1955.

It is not commonplace for designers to progressively raise their prices to accommodate material and labour increases to compensate for the previous year’s losses due to the pandemic, particularly a considerable fall in foreign sales from frequent clients such as China.

Despite significant price hikes, the company’s customer base does not appear to be shrinking. Chanel remains a label with a high resale value, which is unlikely to change