Chanel has raised the prices of its high-end products in several countries, including China, Taiwan, Thailand, Malaysia, Australia, and Japan. This price increase is attributed to fluctuations in exchange rates and is said to be in line with Chanel’s regular pricing strategy, which involves reviewing prices twice a year in March and September. Prices have risen by 6 to 8 percent overall.
Chanel is known for its strong pricing power in the luxury market, which means it can raise prices without necessarily losing customers. However, there have been signs in the past year that consumers, particularly those purchasing entry-level luxury products, have become more price-conscious and may be curbing their spending.
This price increase comes amid a global slowdown in demand for luxury goods after the post-pandemic boom years. Economic challenges and a tough job market for young people in China have affected consumer confidence, and this has had an impact on the shares of luxury groups like Richemont and LVMH Moet Hennessy Louis Vuitton SE.
It’s worth noting that Christian Dior, the parent company of Dior and other luxury brands, will be the first luxury group to report third-quarter sales on October 10, which will provide further insights into the state of the luxury market.