Chanel Hikes Prices Again Amid Unflagging Demand
03 November, 2020
French luxury brand Chanel once again raised its prices by around two percent on Monday, just five-and-a-half months after the last hike due to unflagging demand.
Chanel Korea said prices were raised to equalize dissimilarities in different countries because of exchange rate fluctuations.
The cost of a Chanel's Maxi Classic handbag rose from W9.93 million to W10.14 million, while prices of wallets and other leather goods rose around five percent (US$1=W1,136).
Chanel said the purchase price hike was "unavoidable" because of the rising euro, but industry insiders explain that the euro is weakening.
The euro rose to the W1,400 level at one point between July and September but is falling now major Europe are implementing another lockdown because of a resurgence of coronavirus infections and the European Central Bank has hinted at an additional quantitative easing.
When Chanel last hiked prices on, may 14, the euro was worth W1,326. But it has since fallen to W1,321.
Industry insiders say that luxury brands are jacking up prices to benefit from pent-up demand in Asia for ostentatious bling.
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