Chanel: Even Pricier Thanks to Michael Kors
Posted Monday March 10, 2014 10:13 AM GMT
Ready to talk numbers? According to the Wall Street Journal, in the past five years, the price of a Chanel quilted bag has risen 70 percent to $4,900. Ouch.
The increase reflects an overall market shift in luxury goods due to a few connected factors. Let’s break them down:
First off, there’s more competition than there was five years ago. With brands like Tory Burch and Michael Kors killing it as of late, top-notch retailers like Chanel are forced to become even more elite … and hence, expensive. Next, production costs are on the up. Quality leather doesn’t cut it anymore — brands like Gucci and Louis Vuitton need the best leather to remain on top of MK and the rest, who as we pointed out above, are already giving them a run for their money. High-end brands are also being forced to shell out more dough for quality manufactures. Lastly, they think that increasing cost of products is good for business. In a twisted fashion (literally), customers want to pay more for fancy Nancy products. If a Chanel bag were priced the same as a Michael Kors purse, wouldn’t you think of the two as equals? Chanel never wants to be considered an equal, so they’ll probably continue raising their prices until the end of time.
Unfortunately, it’s us — the customers — who are forced to pay $4,900 for a Chanel bag instead of a mere $1,470. So next time our moms tell us, “I miss the good old days,” we’ll take their word.