Chanel to harmonize global pricing
French fashion house Chanel is set to harmonize its global pricing structure from next month, in response to the changing market.
French fashion house CHANEL is set to harmonize its global pricing structure from next month, in response to the changing market.
According to WWD, Chanel will begin by harmonizing sticker prices for three of its most iconic handbags from April 8, which will effectively translate to a hike in price for Europe and a significant drop in Asia.
In China — the world’s third largest market after the US and Japan — the shift will see that prices are never higher than five percent above the prices in euros, Chanel’s president of fashion Bruno Pavlovsky told French daily Le Monde, thus bringing its Asia-based customers back to the fold.
Pavlovsky added the shift to its pricing strategy overall is a “better way to ensure the relationship we want to build with our customers” and “prepare the brand for the next 10 to 15 years.”
The strategy, which may help to balance out the brand’s prices amidst continuous currency fluctuations and encourage consumers to purchase only certified products, will reportedly see Chanel introduce harmonized prices gradually and across all fashion categories, with full alignment to be complete by the end of this year.
Exceptions to the strategy include Brazil, constrained by high export duties, and prices in the US, UK, Canada and Japan, which will remain relatively untouched as they are already well-aligned, according to Pavlovsky.