Chanel 2024 Price Increase: Essential Insights for Luxury Shoppers

Fashion lovers and economists alike are talking about the 2024 Chanel price increase, and many fans of the brand are becoming irate. 

While Chanel bag price increases typically occur in March and September, this increase is not just early; it’s hefty. Once again, the percentage increases on Chanel bags are in the double digits, following steep increases in 2022 and 2023. In fact, the price of the Chanel Medium Classic bag — the atelier’s flagship luxury handbag — has nearly doubled in five years. Priced at $5,800 in 2019, the iconic bag is now $10,200 in 2024. This extraordinary Chanel price increase has enraged many, yet it is unlikely to hurt the brand. 

Let’s dig into the specific Chanel 2024 price increases and then explore why the company is pursuing this aggressive pricing strategy and whether it is likely to backfire. 

Chanel Price Increases of 2024

Before we delve into what the 2024 Chanel price increases mean, let’s see what they are. These are the confirmed bag prices we have thus far.

While these eye-popping prices might seem to imply that the bags are crafted from exotic skins, this is not the case. All the Chanel bag price increase information we have pertains to the classic options of caviar and lambskin. Many warn that the above prices for the Chanel Classic bags and the Chanel Boy bags seem to price the middle-class brand aficionados right out of the chance to own one of their favorite bags. This may be precisely the intention. 

Reactions to the Chanel Price Increase 2024

The rumbles of angst and discontent you hear are not coming from American voters considering their options. It is the legions of Chanel fans who feel the luxury design house has left them behind with the 2024 Chanel price increase. While certainly not the first instance of Chanel’s aggressive pricing, this time feels different. 

When Chanel bag prices boomed during the pandemic, fashion lovers assured themselves that the design house was making up for the revenues lost due to COVID-19. In 2022, supply lines and material shortages were blamed, though many observers suspected it was more akin to Hermès-envy. In 2022, Chanel adopted the highly successful Hermès scarcity strategy and quota bag system. In 2023, we were told that the price hikes were necessary to offset inflation and currency volatility. Now, the explanation for the 2024 Chanel price increases appears to be the desire to eliminate regional price differences. But these explanations appear to be wearing thin.

Chanel lovers have complained about price increases and threatened brand strikes and boycotts in the past, but the anger has reached new heights in 2024. Many feel deeply disrespected and are unlikely to forgive the design house for the snub. And that appears to be precisely what Chanel hopes to achieve. 

Evolution of the Luxury Bag Market

The Chanel price increase of 2024 illustrates an intriguing amendment to the law of supply and demand for luxury goods only. Thorstein Veblen, an American economist and sociologist at the turn of the 20th century, published The Theory of the Leisure Class. In this seminal work, he identified a class of luxury goods, termed “Veblen goods,” that defied the laws of supply and demand. Although the demand for most goods decreases as prices rise, the reverse is true for these uber-luxury items. As the price of Veblen goods increases, so does the demand for them. Essentially, as the rising prices make luxury goods more exclusive, the ultra-wealthy value them more and are prepared to pay higher prices to maintain that exclusivity.

Chanel clearly covets equal standing with Hermès in the luxury market. But the brands cannot be truly comparable as long as so many members of the middle class are wearing contemporary Chanel bags or Chanel jewelry. While the supreme quality of materials and artisanship is a crucial indicator of true luxury, so is exclusivity, and Chanel wants it. Whatever you think of the strategy, skyrocketing prices on Chanel bags is working. 

Despite — or because of — the extraordinary Chanel bag price increases of recent years, crowds line the streets outside Chanel boutiques, awaiting the season’s new releases. The company has opened several private luxury boutiques to cater exclusively to brand VIPs who have established an extensive purchase history. The by-invitation-only private boutiques offer an exclusive purchasing experience far from the prying eyes of social media.

The Effects of the Chanel Price Increase of 2024

As Chanel bag prices continue to soar, several effects are clear. As the aspirational customer is priced out of the bags they have been saving up for, many are turning to the resale market for previously owned Chanel bags. As appreciation for sustainability grows, the demand for vintage Chanel climbs. Others appear to be keeping their beautiful bags in storage, prizing them as valuable collectible investments rather than wearing and enjoying them. 

One thing seems clear: the new Chanel bag prices will likely drive the demand ever higher, with more price increases to follow.

With quotas in effect virtually in every store selling Chanel bags, it is likely that a favorite will be hard to acquire. If you already purchased a Mini Flap at the beginning of the month but you need to buy your mom a small black Classic Double Flap later in the month, chances are you are out of luck. Similarly, you can drool over the beautiful seasonal colors when a collection drops, but you can only take one quota bag. So if you want the mini in three different colors, you can only have one. Come back in a month and the other two color minis are likely sold out. 

Madison Avenue Couture imposes no quotas or restrictions on your purchases. The majority of our Chanel bags are store-fresh, pristine and ready to ship. So if you are still eying that mini sold out at the boutique, Madison Avenue Couture may likely have it.