Chanel hike their prices for the second time in a year

Chanel Ireland

Chanel hike their prices for the second time in a year

Chanel hike their prices for the second time in a year

In Irish fashion news, French fashion label, Chanel have confirmed that prices of their items have increased yet again.

For the second time this year, Chanel have decided in the interest of the brand to increase the cost of their items which they hope will cushion their profit margins during COVID-19 pandemic.

In a statement released Friday 6th November in response to international news organisation Reuters querying the jump in costs by Chanel, confirmed that their latest price hikes are the consequence of recent significant exchange rate fluctuations between the euro and certain local currencies.

Chanel went on to confirm that their price adjustments apply to countries where it is necessary. They believe it will help guarantee that Chanel items are sold at comparable price levels across the world. They also added that this was very important now that international travel is being restricted due to the coronavirus pandemic lockdowns.

Earlier this year in May, Chanel increased the cost of their accessories between 5% -17% which was applied to small leather good and items from their luxury handbag range.

Flavio Cereda who is a financial analyst at American multinational independent investment bank
Jefferies, these price hikes are more noticeable in counties like China, Japan, Hong Kong, Great Britain and South Korea
.
Flavio also expects other major luxury brands to follow in the footsteps of Chanel and raise their own prices as an act of compensation suffered by all retailing brands across the globe whose margins have been severely affected due to COVID-19.

VMH Moët Hennessy Louis Vuitton who operate high end luxury brands like Prada, Gucci, Dior and Ferragamo have also followed suit by hiking the cost of their fashion good this year also.

Some fashion financial analysts believe that luxury branded European labels costs as much as 30% in counties like China compared to the rest of Europe.

 

Chanel hike their prices for the second time in a year

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