by Maura Carlin, Editor
Luxury brand Chanel has finally acknowledged what fashionistas already knew: Chanel handbag prices are too damn high.
For the year ending December 31, 2024, Chanel’s annual revenues dropped 4.3% to $18.7 billion, as compared to the reported $19.7 billion at year-end 2023.
Read:
Chanel Speaks Out and Hints at Further Price Increases
Is Chanel Saving Its Big Price Increase for 2025
Characterizing the last several years as “a period of exponential growth” Chanel’s Global CEO, Leena Nair, normalized this dip saying:
“ . . . in 2024 we saw challenging macroeconomic conditions which had an impact on sales in some markets. As a 100-year brand, we expect ebbs and flows. Our philosophy has always been to act with a long-term view, propelled by the singularity of the CHANEL brand. Last year, we invested record high levels in our boutique expansion, client experience, and creative ecosystem and savoir-faire.”
In announcing the results, both Nair and Global CFO, Philippe Blondiaux, focused on Chanel’s long-term investment strategy during 2024. They pointed to real-estate acquisitions, new boutique openings, and innovation.
Chanel’s financial results report does not break out revenues by product line or division. However, Business of Fashion reports that beauty, jewelry, and ready-to-wear achieved success during 2024, leading to the conclusion (or speculation) that the handbag and leather products led the decline in revenues.
Over the last several years, even the most die-hard of Chanel aficionados have complained of the ever-spiking prices, with whispers about lagging quality. Not coincidentally, we suggest, Chanel has opened its handbag production workshops to the media, putting the “craftsmanship” on display.
Read more here.
Inside Chanel’s workshop
The reality is that the prices for Chanel handbags (as well as its other fashion and ready-to-wear products) have ballooned at a rate disproportionate to cost and inflation. As an example, the price of the 11.12 Chanel Classic flap has more than doubled since 2017, rising from $5,300 in 2017 to $10,800 in 2024.
More stunning are the price hikes imposed during the pandemic. The iconic handbag price was $5800 in early 2020, and spiked to five figures, $10,200 by 2023, representing a 76% increase in just three years. It also brought the price of the Chanel flap alarmingly close to the cost of a small Birkin, reducing the Birkin Premium to low single digits.
Read:
Update: Birkin Premium Drops to Single Digits After Chanel Price Hikes
Blondiuaux, however, points to the most recent price hikes in the range of 3% as “perfectly in line with global inflation, if not less than that.”
“We intend to maintain more or less the same policy, which is to monitor our prices in line with global inflation in 2025.”
Perhaps not surprisingly, and given the state of its sales, Chanel did not impose an annual price hike (thus far) in 2025, nor has it yet passed on any tariff costs to US customers.
Another perspective, though, is that Chanel has done quite well in light of the geopolitical and economic headwinds faced by the luxury industry as a whole. Even with sales in the Asia-Pacific and Americas regions down 9.3% and 4.3%, respectively, compared to 2023, the brand managed to limit the decline to 4.3% overall.
Further, Chanel achieved this while in complete designer disarray and flux. Its prior head creative designer, Virginie Viard, abruptly walked out nearly one year ago, leaving its design studio in charge of creations and shows. In December 2024, Chanel appointed Matthieu Blazy as its Creative Director, and his first collection is due Fall 2025.
If we had to guess, Chanel may hold off on further price increases until Blazy’s inaugural collection. What do you think?
Read:
Breaking News: Chanel Appoints Matthieu Blazy As New Creative Director
Love, PurseBop
XO
Updated: May 23rd, 2025
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