Chanel Increases Prices in China as Concerns About Luxury Demand Mount

6 Oct 2023

Chanel increased prices of its high-end products in China in September, amid a slowdown in demand for luxury goods worldwide after the post-pandemic boom years.

The company also raised prices in Taiwan, Thailand, Malaysia, Australia and Japan, a spokesperson for the luxury brand said, citing fluctuations in exchange rates. Overall, prices have risen between 6 percent and 8 percent.

“This is something we regularly do, in line with our commitments made in terms of price harmonisation,” the representative said in an emailed statement. A classic medium-sized flap bag currently costs 80,500 yuan in China ($11,030), while it sells for €9,700 in France ($10,230).

Exclusive luxury brands are known to enjoy strong pricing power, meaning they can apply increases without necessarily losing customers. But in the past year there have been more signs that so-called aspirational customers buying entry-level products have curbed their spending.