Items from luxury brands like Chanel are no longer an investment?

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There is a massive stir in the luxury fashion community as Chanel recently increased the prices of their handbags by an upwards of 20%. The luxury brand appears

to boldly increase their prices drastically twice every year. Many fashion lovers are unhappy with these price increases., In 2022, Chanel sustained its customary double-digit revenue growth despite store closures in Russia and China. However, Jefferies research analysts notes that the sales boost could be attributed to a 21-30% price hike on its bags. This is over the past few years rather than an overall increase in sales volume.

The price increase is substantial. Only the small size Classic Flap remaining under $10,000 and the Maxi surpassing the $11,000 mark. The Classic models experienced a 16% increase, pushing most prices above $10,000. The Coco Handle, Chanel 19, and Pearl Crush all saw a 14% increase across all models.A prominent YouTuber, Sophie Shohet states in her video that Chanel bags are at a point where they are not gaining in value.

She also states the investment value are declining with other popular luxury items like bracelets and shoes. Ready-to-wear and iPhone covers are the ones to drop most in value after purchasing. Besides that, other luxury brands such as Christian Dior are also no stranger to having their handbags, like the Lady Dior, dropping in value.

 

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