Fashion News - 24 December 2021, by G. Finnegan

Chanel elevates the iconic status of its handbags

Although business has been very good for the House of Chanel in 2021, not least because of great communications and the No.5 100th anniversary celebrations, Chanel has made several price increases to increase the desirability and exclusivity of its handbags.

Chanel has raised the prices of its handbags for the third time this year and the fourth time since the pandemic began. In China, the price of a 2.55 Medium Flap Bag has been increased by more than 65 per cent in 2 years. In the luxury bag industry, price adjustments are expected at least once or twice a year to reflect changes in production costs and exchange rates, but Chanel's increases suggest something special. 

The House of Chanel made further headlines when it severely restricted the number of handbags customers could buy at one time. However, the restrictions are not uniform and vary from the type of model and also the geographical location model.

An Icon

The House of Chanel is able to make such a price increase because it has maintained its precise positioning as a luxury brand since Coco Chanel. Perfume No.5, tweed suits and quilted handbags with the CC logo are icons of understated elegance - reinterpreted every season but always mainstays of the collection.

Nevertheless, Chanel handbags do not have the same iconic status as the Kelly or Birkin models by Hermès. One explanation could come from the secondary market, where Hermès handbags have the highest appreciation. The Birkin bag was created specifically to meet the needs of actress Jane Birkin and the Kelly bag became famous on the arm of Grace Kelly, both historic events in the world of handbags.

The Chanel and Hermès brands compared

Both brands are traditional luxury brands, but their core competence was not leather goods. 

Hermès is 70 years older, but its founder Coco Chanel was a visionary and had fought for a place for herself as a woman against all the social conventions of the time. The house of Chanel still carries the feminist charm today.

Chanel is still visionary today and there are handbags in all materials like tweed and nylon that are cruelty-free while Hermès offers only one model that is not made of leather.

The description of Hermès' handbag making is legendary, while Chanel has not bothered with this production until now.

The simplicity of Hermès is timelessly elegant, but could it be a little conservative? Chanel is vibrant and interprets every zeitgeist.

For more details and prices of the two brands:

www.chanel.com

www.hermes.com