While a part of Europe is facing a considerable inflation, the luxury houses are seeing their prices increase.
Indeed, many luxury brands have increased the price of their items up to 30% in recent months. This concerns mainly leather goods, accessories and jewelry. This price increase is justified by the price of raw materials, import duties and exchange rate fluctuations. Take the example of Chanel and the increase of several bags and some pieces of its spring ready-to-wear collection that rose by 6% in Europe. In one year for Chanel's iconic 2.55, the large size version now sells for 8,900 euros.
In addition, Chanel announced a few days ago an increase in its pricing in the jewelry and watch sector. The House has not yet communicated the percentage increase. Despite inflation, the brands continue to make record profits in recent months that could largely offset the costs mentioned above.
"Chanel regularly adjusts its selling prices to take into consideration changes in raw material and production costs. The strong demand for precious stones - in particular diamonds - and gold has resulted in an increase in their prices. In this context, Chanel is therefore forced to pass on these variations in its sales prices," the company said.
Despite the price increase, demand continues to grow. The more expensive items are, the more inaccessible and therefore rare they become, which attracts more and more desirability from consumers.