Two weeks ago we reported on rumors that Chanel's iconic handbags and purses might be due for a price hike at the start of the month. Though several of the department stores we called were reluctant to confirm the increase and its specific details in advance, August 1 came and went, bringing in costlier price tags for the luxury brand.
According to Madison Avenue Spy, prices for the "Classic" and the "Reissue" style bags have rocketed as much as 30 percent, with the Reissue climbing to $4200 from $3600. And bags aren't the only goods to have been marked up: other popular accessories such as Chanel's signature ballet-style flats are now $100 more expensive at $685, with some pairs of classic flats priced as high as $895.
While this occurence wasn't entirely unexpected—pricing trends in Europe reflected a similar raise several months ago—however, the reason behind it remains unclear. Madison Avenue Spy suggests that the rising middle class in China, which respresents 25 percent of the world's population might have something to do with an increased demand for the status-enhancing goods, however one might argue that this doesn't apply stateside. Though the economic recovery is well underway, we're still a long ways off from the frivolous spending days of the budget-surplus 90's. Stratospherically-priced Chanel bags may lead to more knock-offs than investments in the genuine articles.