Is Chanel Lowering Its Prices?

When it comes to luxury goods, specifically the big three—Chanel, Louis Vuitton, and Hermès, one thing remains a given—there will be price increases and lots of them.

In the 2020s, it has been customary for Chanel shoppers to expect annual or bi-annual price increases, sometimes by nearly 20%. 2024 was no different, with Chanel kicking off the year with a fresh set of jaw-dropping prices.

No one was surprised, given Chanel’s chief financial officer, Philippe Blondiaux’s, previous promise, which signaled Chanel’s implementation of regular, bi-annual price increases “to account for currency fluctuations and inflation.”

Chanel Looks Towards the Future

Today, Blondiaux and the French House are singing a different tune following a decline in annual revenues for the first time since 2020. BoF reported that Chanel’s sales were down by 4.3% in 2024, though it’s worth noting that the House had seen unprecedented growth in the years prior.

Still, Chanel is set to open new stores in new markets despite the economic downturn and continued slowing of the luxury market. This year, the brand will focus more on its investments than aggressive price hikes ahead of new creative director Matthieu Blazy‘s fall debut.

Like many other luxury brands, Chanel is currently in a transitional period. However, despite the odds and decreased revenue, it still saw growth under the design direction of its in-house creative studio, and Blondiaux stated that ready-to-wear was one of the brand‘s fastest-growing categories last year.

Will Chanel Lower Its Prices?

While Chanel won’t be lowering its prices anytime soon, consumers will see some relief regarding the cost of leather goods. In fact, the growth within the ready-to-wear categories signals pricing fatigue elsewhere, leading Chanel to dial back on its pricing strategy.

As mentioned above, Chanel saw astounding price increases of as much as nearly 20% in the post-pandemic world. In recent years, they’ve dialed it back, increasing prices more in line with inflation. Blondiaux stated that 2024’s average price increase was around 3%, further emphasizing its plans to keep price increases more in line with global inflation.

The statement is almost vindication for consumers who long argued that Chanel couldn’t blame its price increases on inflation alone. Still, pulling back on price increases doesn’t signal a halt in them altogether, and price increases remain inevitable, no matter how small.