And after 112 years, Chanel's still one of the biggest names in the US$340 billion luxury industry.
Background: Chanel are a French luxury brand famous for their leather handbags and that crossed-over CC. And after 112 years, they're still one of the biggest names in the US$340 billion luxury industry.
What happened: Even though sales at Chanel fell 17.6% last year, the company kept their profits up by ramping up their prices.
What else: Put ya wallets away, Flux fam...'cos Chanel are about to do it again. The company revealed they are once again hiking their prices for their 'iconic models' to account for changes in their production costs and raw materials.
💡Unlike everyday brands, which aim to reduce their prices, luxury brands are actually increasing their prices. And, ironically, this makes them seem even more premium.
💡In 1991, The OG Mac laptop sold for $2,300 in 1991...and now they start at $1,500 (a 35% decrease). Chanel on the other hand? A Medium Classic Flap bag was $1,150 in 1990...and it's $7,800 this year. That's a 560% increase.
💡For luxury brands, limited supply can create a sense of exclusivity that we're all familiar with (aka FOMO). In the end, price hikes don't deter buyers...in fact, it just adds to the allure of the brand.
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