INFLATED PRICES FOR INFLATED TIMES

As consumers face sticker shock, is the luxury market undergoing a reset?

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AS THE WORLD was coming out of Covid shutdowns, the French luxury brand Chanel raised its prices-a lot.

At first, this move seemed to be a short-term strategy to make up for losses sustained during the pandemic. But no. Chanel kept ratcheting up prices for its iconic medium-sized classic Flap Bag, from $5,800 in early 2020 to $10,200 in March 2023-a 76-percent spike in three years. Apparently, Chanel executives wanted to reposition the brand as a peer of Hermès in terms of exclusivity and price. Overall, analysts estimate Chanel raised its prices from 2019 to 2023 a total of 59 percent.