Chanel's August 9 price increase in Europe raised the Classic Flap by 9 percent, its second hike in six months after March 1, 2022. With the euro at parity with the US dollar, the old math of saving by flying to Paris no longer works: a medium Classic Flap went from 8250 to 8990 euro before the VAT refund.
The bag math: Paris vs America
Before the increase, shopping in Europe saved tourists real money. A quick comparison for a medium Chanel Classic Flap: in Paris the bag cost 8250 euro, with 13 percent VAT and a refund of 1072.50, bringing the actual cost to 7177.50 euro. In America the same bag cost $8,800, with 9.5 percent tax of $836, bringing the actual cost to $9,363. At the time, with the euro equal to the US dollar, that was a total saving of $2,458.50. After this increase, the arbitrage narrows and the flight is harder to justify.
The new prices
Here are the confirmed new prices for the Classic Flap in Europe:
- Small: 7750 euro, now 8450 euro
- Medium: 8250 euro, now 8990 euro
- Jumbo: 8900 euro, now 9700 euro
Prices were expected to rise around 5 percent on all other leather categories, plus ready to wear, shoes and other lines.
What it means for buyers
This is Chanel's second European increase in a six month span, and it arrived to reflect the change in the euro, which hit parity with the US dollar. The rumour mill suggested Louis Vuitton would follow with increases of its own. Europeans feel the impact most, between national inflation and the declining currency, while travellers lose the classic Paris discount. The smarter play for bag enthusiasts is watching pre-owned prices, which move more slowly than boutique hikes like these.
Explore the pre-owned alternative in our Chanel collection, see which bags hold value in the top resale handbags, or start in sale.
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