Since the pandemic began, it's clear our expenses have gone up, and this extends to luxury items like designer handbags. In this post, we're taking a look at how much the price of the most sought-after bags from Louis Vuitton, Chanel, and Hermès has increased since 2019.
Interested? Keep reading to discover insights that may surprise you.
Why Take These 5 years for Reference?
The main reason we're taking 5 years for reference is the considerable surge in prices during and after the pandemic.
House prices and the cost of everyday goods have grown significantly since the emergence of COVID-19. A Federal Reserve study highlighted that owner-occupied housing wealth rose substantially by $9 trillion from the early stages of the pandemic until early 2022. In a similar vein, USA Facts reported that what was once a $100,000 home in January 1991 escalated to an estimated worth of $331,190 by April 2021, indicating a significant price upswing during the pandemic. CBS News indicated that recurring household expenses, including rents and home sales, have inflated when compared to the same months in previous years since 2019, illuminating the broad increase in costs for everyday goods.
These are official annual inflation rates in the US in these 5 years.
| Year | Average Rate of Inflation (US) |
|---|---|
| 2023 | 4.1% |
| 2022 | 8.0% |
| 2021 | 4.7% |
| 2020 | 1.2% |
| 2019 | 1.8% |
Turns out, the cumulative inflation over these 6 years is 21%.
This means, an item costing $1,000 in 2019 would cost approximately $1,212.30 in 2024 according to the inflation rates provided, reflecting an increase of about 21.23% due to inflation.
Now that we understand this, let's examine the pricing adjustments made by the most popular luxury bag brands for their most iconic handbags: the Hermès Birkin, Chanel Flap, and Louis Vuitton Neverfull.
How Hermes Birkin Price Changed in 6 Years
As Birkin comes in a variety of leathers and sizes, for convenience, we'll be only looking at the Birkin 30 in Togo leather pricing.
In 2019 in the US, Hermes Birkin retailed for $10,900. Hermes avoided considerable adjustments during the pandemic (for instance, in 2020-2021 there was no adjustment at all). Yet in the first days of 2024 another price increase hit the stores: the signature bag's price was adjusted by 7.7%.
| Year | Price USD | Yearly % Increase |
|---|---|---|
| 2019 | $10,900 | 0% |
| 2020 | $11,000 | 0.9% |
| 2021 | $11,000 | 0% |
| 2022 | $11,300 | 2.7% |
| 2023 | $11,600 | 2.6% |
| 2024 | $12,500 | 7.7% |
Overall, the price of the Birkin 30 has increased by 14.5% in 2024 compared to its 2019 retail price. Interestingly, this increase is lower than the official inflation rate.
Given this trend in Hermes Birkin pricing, we anticipate further adjustments to the price in the coming years.
How Louis Vuitton Neverfull Price Changed in 6 years
Since Neverfull debuted in 2007, it became a Louis Vuitton staple. Unlike their other staples, such as Speedy or Alma bags, the Neverfull was designed with the needs of modern women in mind.
We have a large article that reviews the Neverfull pricing since the bag was introduced. Turns out, Neverfull is a great investment that beats the S&P500 index. No wonder, the price adjustments for the bag far exceeded the cumulative inflation. Although the past 3 years there were no increases at all, two previous steep price increases account for a 46% price increase in 6 years. The current retail price went from $1,390 to $2030.
On 24 April 2023, LVMH became the first European company to reach a $500 billion valuation.
Of course, these facts don't have to be directly connected. Or are they?
Isn't it crazy?
More on Louis Vuitton Pricing:
- Louis Vuitton Bags: US Price List
- Louis Vuitton Bags: UK Price List
- Louis Vuitton Bags: EU Price List
- Louis Vuitton Bags: Canada Price List
- Louis Vuitton Bags: Australia Price List
- Are Louis Vuitton Bags Cheaper in Europe?
How Chanel Flap Bag Price Changed in 6 years
Yet Louis Vuitton price increases are nothing compared to Chanel.
Back in 2019, the quintessential Chanel Flap Bag came with a price tag of $5,800 – a number now likely to evoke nostalgia and, quite possibly, a wistful tear from luxury connoisseurs. Fast forward to 2021, and the landscape of luxury fashion pricing took a decisive turn. Chanel, in a bold move, announced not one, but three separate price increases within the year. This strategic choice propelled the Flap Bag's retail cost to a steep $8,800, reflecting an upward trajectory in the valuation of Chanel's cherished staple.
Chanel didn't hit the brakes there. Adhering to a policy of annual price escalations, the revered French fashion house continued its march upward on the pricing ladder. The result? Today's Chanel Flap resides loftily in the price echelon of $10,800, a figure once reserved for the illustrious domains of Hermès.
To put it into perspective, the Chanel Classic Flap Bag's price inflation has skyrocketed by a staggering 86% over the span of six years. This surge not only underscores the bag's new pricing strategy but also signals a strategic positioning that aligns it closer to the luxury bracket traditionally occupied by Hermès.
Read more on Chanel purses and pricing:
- Chanel Classic Flap Bag US Price List
- Chanel Classic Flap Bag EU Price List
- Chanel Classic Flap bag sizes - a thorough comparison of the Classic Chanel Flaps and what fits into them
- Chanel WOC Price List - global price list of Chanel WOC
- FREE Chanel Serial Number Checker
Summary
After seeing what the luxury brands are charging, there's only one thing to add. Buy preloved. In resale, the prices are not growing that fast and for some brands they haven't even been adjusted much.
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