Will Chanel stop increasing prices? The market conditions of the luxury market are not looking good. Popular designer brands like Louis Vuitton, Chanel and Hermès saw a sharp decrease in sales and revenue. So how will Chanel respond in this situation? Will they raise prices again in 2026, 2027, and the years to come? What are the predictions? Here is what we think…

Highlights:

• Chanel revenue dropped in 2024
• Sales went down by 4.3% or by $18.7 billion USD
• There is a slowdown in the leather goods sector
• Chanel to slow down price hikes
• Additionally, Chanel is now also focused on rebranding

1. Chanel face backlash due to price increases

In the past years, Chanel has received a lot of criticism for their sharp price increases. For example, the Chanel Classic Flap Bag almost doubled the price in 2019. But as Chanel hiked their prices, the consumers kept buying. It was as if the prices had no effect on the market. In fact, the higher the prices went, the more their popularity rose.

But in 2024, Chanel has experienced the first drop in revenue. The sales plummeted by 4.3%, which is almost $18.7 billion USD.

According to BOF, CEO Leena Nair and CFO Philippe Blondiaux have called the luxury market “challenging.” And it is trying to update the image of Chanel under new creative director Matthieu Blazy.

The leather goods sector saw a slowdown in sales. It’s not only Chanel; LVMH reported a revenue plunge of 4% in the first half of 2025. In Q1 of 2025, Hermès sales growth dropped by 7%. The broader market of luxury goods is taking a hit at the moment.

2. Chanel To Slowdown Price Increases

Therefore, Chanel has decided to slow down the price increases. It’s important to know that it’s a “slowdown”; the price increase will continue but not as much as before. And there will be no price decreases; that will never happen.

This expectation is in line with the recent price increase in 2025. Chanel hiked their Chanel Classic Flap Bag prices in the USA by 4.42%. Chanel increased the Chanel Classic Flap Bag prices in Europe by 6.20%.

As long as the leather luxury market is having difficulty, Chanel will not inflate the prices as aggressively as before. The Chanel Classic Flap Bag will most likely not double or triple in the next three years.

We belief the crazy price increase will resume after the luxury leather market recovers. Chanel remain committed to their goals and they will not slowdown their investment. Despite the drop in sales, Chanel has opened 48 new boutiques in 2025.

3. Chanel Price Increase Future Prediction (2026, 2027 and 2028)

How much do we think Chanel will increase prices in 2026, 2027, and 2028? We see the luxury leather market slowly recovering in 2025 compared to 2024. Hermès revenue went up by 7% in the first half of 2025, mostly due to accessory goods. The average global inflation per year is around 3%. We believe that Chanel will increase their luxury goods according to this standard, which is a minimum. We believe the regular or new Chanel collection handbags will go up in price by 3–5% every year. The iconic Chanel Bags like the Chanel Classic Flap Bag, Chanel Reissue 2.55 Bag, and Chanel Boy Bag will soar by 5–7% per year.

4. An Opportunity To Find Chanel Bag Cheap

The market slowdown has hit not only big brands but also the resale market, secondhand market, and reseller market. There might be a seller waiting for a buyer, and she is ready to give up her Chanel Bag for a low price. The handbag does not need to be used; it could also be new.

You can find handbags that are:

• New, unused condition
• Like new or barely used condition
• Fairly used condition

There are also consignment stores like Fashionphile. These shops might discount even further, but you need to be actively searching and be patient. When the opportunity arrives, you should buy it as quickly as possible.

I believe the luxury goods market will bounce and grow again. When that happens, Chanel will continue their price increase strategy. I still believe the Chanel Classic Flap Bag will match the prices of the Hermès Birkin Bag or Kelly Bag in the future.

Let me know what your thoughts are in the comments.