French luxury house Chanel has increased its prices across six of its markets in the Asia-Pacific region, as the Parisian company looks to make up for a slowdown in demand for luxury goods worldwide.
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A company spokesperson said Chanel raised its prices in mainland China, Taiwan, Thailand, Malaysia, Australia, and Japan, last month, citing fluctuations in exchange rates. Overall, prices in September have risen between 6 percent and 8 percent.
A classic medium-sized flap bag currently costs CNY 80,500 in China (USD 11,030), while it sells for EUR 9,700 in France (USD 10,230),
“This is something we regularly do, in line with our commitments made in terms of price harmonisation,” a representative said, as per a Bloomberg report.
According to reports, Chanel revises its pricing strategies twice a year, in both March and September, respectively. Chanel also carries out price increases in line with input-cost inflation.
The last price hike for the company was announced in November 2020, following a price hike in May, with the company citing “exchange rate fluctuations between the euro and certain local currencies,” according to a Reuters report at the time.
In May this year, Chanel said sales in the United States, one of the luxury label’s top three markets, have slowed to a single-digit growth rate over the past six months, adding to evidence that the post-pandemic spending splurge in the country has tapered off.
At the time, Chanel highlighted an increase in sales in mainland China and Chinese shoppers resume travelling, adding that the Chinese are “more than enough to compensate the temporary softness in the U.S.,” according to Chanel’s chief financial officer Philippe Blondiau, as per a Reuters report.