Much has been said about Chanel’s recent move towards harmonising their prices worldwide, starting with their 3 most iconic of bags, the 11.12 (Classic Flap), the 2.55 and the Boy Chanel, which I already reported here on 17 March.
And while many are still confused about what this really means to us (I know I was), this post hopes to sort it all out. For starters, why did Chanel do what they did? Officially, there are 3 reasons.
Firstly, and I think most importantly, it is to offer us more closely-aligned prices, which also means that in time to come, it won’t matter where in the world we buy our Chanel from because the difference would almost be negligible. Having everything sold at almost the same prices means you’ll no longer need to travel far and wide for the same bag you can get in say, Singapore.
Secondly, this move will also see all 190 boutiques worldwide being able to provide a better level of service, as opposed to situations where it’s like a bus terminal at their Rue Cambon boutique in Paris (trust me, I’ve experienced it many times) to virtually empty boutiques in some countries across Asia. It’s logical too. Spreading out the customers more evenly also means a less-hassled customer who’s now able to enjoy the entire experience even better.
Last, but not least, Chanel will be better able to fight against the ever-growing parallel market/resellers that are present in all countries where it’s more expensive to buy Chanel than in Europe. The truth is this. It doesn’t make a difference to Chanel where you buy the bag from, because at the end of the day, it’s still sales. The difference is, because you bought it from a parallel reseller, Chanel isn’t able to provide the after-sales service in case anything does go wrong, which ultimately ruins the experience for the customer to begin with. What’s even worse? The high possibility of being sold a counterfeit bag, because you can never be 100% sure.
But what does that mean for us in Singapore as far as the prices are concerned? Well, here goes. As far as the 3 iconic bags go, we’re looking at roughly a 12% decrease. What used to be SGD7550 for the 11.12 and the 2.55, for example, is now SGD6660. The Boy Chanel? Previously priced at SGD6580, it now retails for SGD5820. Effective now, you can stroll into Chanel boutiques at Ngee Ann City and Marina Bay Sands to purchase these bags at the new prices.
According to the South China Morning Post, prices in Hong Kong have decreased almost 20%, with a small Boy Chanel now retailing for HKD29,700 instead of HKD37,000, while BoF reported that a standard 2.55 now costs RMB29,800 in Shanghai.
What about prices in Europe, you ask? Well, I have it on good authority that prices there are still the same and there will be no upward adjustment till 8 April 2015. Which also means if you are planning a trip to Europe anytime soon, this is your last chance before prices go up there.
Down in Asia. Up in Europe. I know it’s a bit confusing now, but it’s for the better in the long run as far as we the customers are concerned.