Chanel’s iconic medium flap bag has recently crossed the 10,000 euros threshold, marking a significant increase in price. CEO Leena Nair defended the luxury brand’s pricing strategy, citing inflation and the use of premium materials and craftsmanship.
Nair emphasized Chanel’s unwavering commitment to quality, attributing the price hikes to the rising costs of raw materials and production. The medium flap bag, now retailing at 10,300 euros, has seen a substantial increase compared to its price of 6,500 dollars in 2020.
“While luxury brands like Chanel command strong pricing power, driven by their aura of exclusivity and prestige, the recent surge in prices has sparked controversy,” Nair stated. The brand justified the adjustments as necessary to maintain fairness across markets.
Luxury brands meticulously cultivate their image of exclusivity and sophistication, attracting affluent consumers who are willing to pay a premium for products symbolizing status. Through strategic branding and storytelling, they foster emotional connections with their clientele, elevating perceived value.
However, with the average monthly salary in France hovering between 3,000 and 3,500 euros gross, owning a Chanel bag remains a privilege accessible only to a select few.
