Yes, you heard it right, Chanel increases its prices for the second time in July 2021. Someone would wonder: “Wasn't there just a price increase earlier this year?” Yes, there was, Chanel already had a price increase in January 2021. And we all were hoping the next price increase won't be until November, but the new prices are already updated on the official website. So let’s have a look and discuss why Chanel price increases have become so frequent. 

New Chanel Handbag Prices [July 2021]

When the rumors about the next Chanel price increase started at the end of June, Chanel lovers couldn’t but sip on their morning coffee (actually, me, too), unable to believe the news. 

It’s making it harder and harder for a regular customer to save up, especially for those who have just started their collection or have always dreamed of owning a Chanel classic. And many former or potential customers don’t even care about buying a Chanel bag anymore. 

Most luxury bag fans consider these new Chanel prices ridiculous and insane, and they all unanimously agree that it's bad enough that they raise prices multiple times a year, but Chanel seems to have the most egregious price increases.

Let’s look take a closer look at how much Chanel is now in the USA and in the UK. 

Chanel Prices in the USA in July 2021

Wow, what an increase! All the bags affected by it have gone up by about 10% and more. The biggest increases in 15% range are the most popular Chanel classic bags - all the Chanel Flap bag sizes except the Mini one, and Chanel Reissue. Gabrielle got hit pretty hard also with an increase of 15% or almost 15%. By the way, one of the recent models  - Chanel 19 - also rose in price by around 12% which is quite considerable for a new model. If you are eyeing this handbag, be sure to check Is Chanel 19 Bag Worth Buying? Ultimate New Chanel “It” Bag Review. 

Chanel Prices in the UK in July 2021

As you can see, the UK wasn't hit as hard as the US but the most dramatic increases are observed for the same models. The big price hike - around 7% - is for Chanel Small and Medium Classic Flap. Another classic - the smallest of Chanel Reissues - also rose by 6%. And, compared to the USA where Top Handle Bag was affected but not very hard, in the UK Large and Maxi Top Handle saw the biggest price increase by 9% and the Small Top Handle - by 7%. 

Chanel Prices July 2021 vs Chanel Prices January 2021

As we have already mentioned that Chanel increased prices worldwide for the second time, it is interesting to compare the July 2021 increase with the one that was in January 2021. 

Chanel Prices July 2021 vs Chanel Prices January 2021 in the US

In the US, compared to the January 2021 increase, this increase is much steeper - twice or, for some models, three times as high. No wonder that so many fashion lovers are outraged - not only it is the second price increase, but the scale of this increase is just hard to swallow. 

Chanel Prices July 2021 vs Chanel Prices January 2021 in the UK

In the UK the increase is, in general, more moderate, and the % of the increase is more or less the same as it was in January 2021. And as with this increase in January, the most hardly hit model was Chanel Top Handle. 

Seeing these price hikes, one can be absolutely sure that Chanel handbag is a true investment as you could always resell it for more than you paid even after using it for a decade. And if you still think that there is no point in investing in luxury purses, check out Why You Should Invest in Louis Vuitton Neverfull MM Right Now? 

Why Does Chanel Increase Prices? 

Let’s look at the reasons why Chanel increases its prices so often in the past years. 

The first reason is the lowered manufacturing capacity. With all the lockdowns and COVID-restrictions, the production should have slowed down a little. They have a cap on how much they can produce in their factories based on existing machines and available labor. And the demand is increasing. 

Here comes the second factor - they want their bags to be more unattainable. Unless they plan on hiring more people and buying more factories, machines, materials, they can’t possibly accommodate the demand, which is ridiculously high. So the solution is to price people out, and it helps that it only added to the prestige and elusiveness. That’s the whole point of luxury, right? 

Some luxury bag lovers consider it horrible that they are excluding a large segment of the population from buying their bags, and add that it is not the way to empower women. It seems Chanel only want a certain class or level of people to carry their bags.

But, actually, maybe it is not that they want it, they have to. And that is the third reason - resellers. When Chanel hikes up their price, so do resellers. Some even joke that these resellers essentially provide free pricing strategy research studies for Chanel. So, if prices are too high, therefore, resellers’ ones will be just ridiculous, most customers will want the experience from the boutique. And the fashion house wants people to buy directly from them, they want direct interaction with their stores. That is the whole point of their business. 

New Chanel Prices vs Hermes Prices

Many fashionistas complain that for these prices you can literally afford Hermes, and some of them even decide to move to the other French fashion brand, though they never thought they would actually start thinking about it. 

And there are obvious reasons behind it. First, despite the annual rise in price for Chanel handbags, Hermes is a better investment because it is the Olympus of the luxury handbag world, and Birkin or Kelly are the most unattainable and desired bags of all time. 

The second reason, which is actually related to the first one, is that Hermes quality seems to be much better, and so the bag lasts longer. 

Customers are just disappointed that with the prices they are paying for Chanel bags, they are encountering way too many quality issues. It is hard to accept or justify. You will almost never encounter such issues with Hermes. Luxury shoppers admit that when they buy ipieces from Hermes, they never check the items anymore, but with Chanel, it is better to inspect every single corner to make sure there is no defect.

Moreover, compared to Chanel, Hermès seems to be very measured in their increases, at least in the last few years. And, really, have you seen people complaining about Hermes constant price increases? Many bags haven’t increased at all in recent years. For example, the US price for Epsom Sellier Kelly 28 has gone from $10400 to 10700 over almost 2-3 years, and the Birkins went up by 3% in 2020.

If you would like to know prices for other Hermes items, check How Much Do Hermes Bags Cost? From The Cheapest To The Most Expensive. 

Why Is It Irrelevant To Compare Chanel to Hermes?

However, some fashionistas argue that you can’t compare Chanel to Hermes even though the pricing now is the same. 

First, because the style is very different. Most Chanel lovers say that buying Hermes bags is cool, but they simply don’t look like Chanel. Of course, you can buy Hermès at these prices, but it’s not always about what you can, and more about what you want. If you look at it this way, you can make a lot of smarter investments with this kind of money. People don’t like Chanel because it’s the most expensive, they like the style and the aesthetics of the fashion house, and would rather choose a Classic Flap over a Birkin. 

Chanel is fashionable and totally different from Hermes. Hermes has meticulous craftmanship and quality, but it gives off more of a "status" to carry a Birkin, whereas Chanel exudes femininity and beauty. 

This is also probably one of the facts why it looks like Chanel isn’t focused on achieving the same type of quality as Hermes. They don’t have another brand competitor that can produce exactly what they do, so there’s no incentive. It’s a fight over a customer's disposable income, not style. Plus, the truly rich customers (their target customers) don’t spend time reviewing the products for dents, scratches, slightly misaligned flaps, and handles.

The second argument why the statement “I’d rather buy a Birkin” is not completely true is the quota you have to spend at Hermes before you are allowed to purchase the classics. You have to spend loads on other things -  around 10,000 -15,000 - to even get offered a Birkin or Kelly.  It’s preloading the cost of the bag into the cost of other items. Chanel is just putting it right up front in the cost of the bag.

Are Chanel Handbags Worth It After July 2021 Price Increase? 

Beside the multiple quality issues with Chanel bags that we discussed earlier, the main disappointment is that the luxury shopping experience that Chanel once offered is no longer there. 

People would like to go to a Chanel boutique and be able to see the bags of the season and be able to buy what they want in person. Instead, it has become a ridiculous rat race on who will get the bag on the day it’s released.

You can’t go to the store and get a classic medium flap in black because usually there’s a 500 people waitlist - when it’s here we’ll ship it to you. That’s not a luxury experience. And that’s where the price point starts to bother, that’s why people are frustrated with Chanel prices more than Hermes. 

Will People Stop Buying Chanel After July 2021 Price Increase? 

Here, people are divided into two groups. 

Some don't mind the price increase at all, and hope it will prevent people from impulse buying/returning, people buying two of something just to return one, and/or buying up everything.

Some are even happy that now they can stop the hunt for the unicorns (only to have them sit on the shelf) and start saving money instead of spending it on Chanel. 

Others are much more disappointed and put off by the new Chanel pricing policy saying that they won’t buy it anymore so that Chanel loses some of its income. 

However, Chanel will hardly care. One of the members of the forum shared that she didn’t manage to get in four stores in London on Chanel’s first day on sale for selected accessories and ready wear because the queue was up to 4 hours!

People keep crying and buying, though they say they’re done with Chanel after every price increase. And then Chanel releases new colors, and everyone forgets about the price increase from a couple of months ago and is all over the hot and trendy color and willing to pay retail or more. By the way, check out Why Do People Buy Luxury Bags: Psychology Behind Chic. 

Chanel will keep going until they sell less. Classic flaps are sold the second they come in. The price increases will continue until people with enough cash can walk in and buy whatever they want whenever they want.

And, despite this outrage on every forum and Facebook group, the real question is when does a company ever have to justify why they are increasing the prices of their luxury goods? People who feel Chanel is “distastefully“ increasing their prices have the choice not to buy, yet some people complain and still go on buying. If you’re not happy with the brand’s business tactics, then don’t support them with your money. Chanel is a company that is going to do what’s strategically best for its bottom line. They are not selling toilet paper or other necessities. It’s not a nonprofit, and they don’t need to be concerned with accessibility. 

What is your opinion now that you know that Chanel Increased Prices Worldwide for the Second Time in July 2021? Please, share in comments!

However, you can always make a choice and go pre-loved where a lot of styles, even discontinued, are affordable and accessible. Check our 100% authentic stock at Bagaholic online store. And if you are buying from others, be sure to order professional Chanel bag authentication for your own peace of mind.