Chanel Handbags Are About to Get a Whole Lot More Expensive: But Are They Really Worth the Investment?
Photo: Sandra Semburg
Editors and buyers who are flown out by their companies to attend Paris Fashion Week usually spend a least a little bit of downtime shopping. In general, they typically like to stock up on things not available in the US, such as French beauty products. But this season, it was all about taking advantage of the exchange rate—which currently favors the dollar—by indulging in luxury accessories and other pricey-but-not-nearly-as-pricey-in-the-US sundries.
At the moment, a quilted Chanel handbag costs one thing in New York, another in London, and another in Shanghai. And the price can vary drastically, depending on where you live. (Right now, it’s surely the cheapest in Europe.) However, Chanel is putting a stop to the price discrepancies as of April 8, 2015, by “harmonizing its global prices,” as WWD put it. For instance, the price of an 11.2 model—a chevron-quilted handbag recently modeled by Karl Lagerfeld muse Kristen Stewart—will be raised from 3,550 euros (about $3,772) to 4,260 euros ($4,530) across Europe. That’s more than a $750 price hike. In China, however, the prices are set to go down, from 38,200 yuan (about $6,110) for that same 11.2 bag to 30,000 yuan (about $4,800), a dip of more than $1,300.
While the prices are still not exactly, perfectly aligned, you get the point: There will no longer be major deals to be had in Europe, and the Chinese will no longer be gouged for purchasing something from Chanel in their own country. (Chanel told WWD that prices in the US and Japan are already won’t be adjusted very much. Right now, the small-sized 11.2 bag in lambskin is $4,700 at U.S. boutiques.) However, it begs the question: At these prices, is a Chanel bag still really worth the investment?
Of course, like all things in life, it depends. “If a buyer chooses a classic bag in a classic color and Chanel continues with significant annual price increases, the odds are good that the bag will retain a great deal of its original value,” says Amanda Mull, managing editor of Purseblog.com, a website geared toward collectors of high-end accessories. “Condition also matters a great deal. A bag that looks new but isn’t will attract more interest from buyers who are looking at higher prices and constrained supply in traditional retail channels.”
However, that doesn’t mean you can flip a bag the way you can flip a house. “Chanel bags in used condition still retain more value than most other brands, but unless you’re willing to wait a decade or more—and price increases and demand continue apace—a buyer with a worn bag can’t expect to recoup their entire investment,” Mull says. The bottom line? Only buy a bag if you are investing in the thrill you’ll get when wearing it, not the potential of making a profit. “I wouldn’t recommend anyone buy a bag as a legitimate investment,” adds Mull. “Bags are like cars. For every model that will attract a collector’s attention down the line, there are hundreds that are used for their functional purposes and then set aside in favor of the newer model.”
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