More expensive prices, limited stock… And these are the most recent official change to Chanel’s marketing plan. A quota system was implemented on June 7, restricting customers to buying only two Chanel classic flaps each year.
There have been rumors floating around for some time about Coco’s home planning to impose limitations on purchases. The official position of Chanel recently was that decisions were determined on a regional or store basis, because of issues with supply.
However, now it’s becoming an official policy across the entire brand. Two classics each year (any size, or color) as well… small flaps have been also included. We have confirmed it in the US however we believe it will be rolled out globally.
For those who have already purchased two traditional flaps in the past season… it’s finished. Our sources confirm that the new quota is applicable to the fiscal year 2022.
This is huge news. It sounds very similar to another brand with which we’re already familiar. It could be the final stage in elevating the stature of the traditional Chanel flap.
With fewer options and fewer bags available being offered this flap is more sought-after, exclusive, and desirable.
What do these mean to both shoppers and collectors? What happens when the value of the iconic flap that you have within your closet will increase is yet to be determined.
We’re not anticipating a price rise in the near term however we might see it within a couple of years, provided that the flap is still in high demand with only a few available.
This is the possible consequence of greater scarcity. In any case, if you’re restricted in your capacity to increase the collection (e.g. purchase new flaps) You may end up becoming more attached to the bags you already have. That is you might value the bags more.
If you decide to rehome your flap to the secondary market, it’s difficult to know. If you are looking for those who want to buy the BNIB (brand new in the box) the most popular and trendy color, premium prices could be appropriate.
Similar to the difficult-to-find Hermes style quotas The bags may be priced at a multiple of the retail price. It is purely an aspirational style currently this has never ever been the norm for Chanel flaps.
It is in fact only in the recent season that the bags experienced any prices above the original price.
In addition, it might be part of Chanel’s strategy to draw attention to the other bags it sells. Consider this Cruise 2023 runway for instance. As we looked over the various bags presented while there were plenty of flap-style bags (and plenty of bags and accessories that resembled bags) There were a few real classic flaps.
To not overstate the importance, However, Chanel may be learning an example from its competitor in the orange boxIf the quota bags are not available customers will buy different items and types.
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It’s true that there’s no shortage of options available at Chanel from the popular cases for vanity (large-small, medium, and micro) as well as jewelry and backpacks and its signature ready-to-wear.
Image Credit: Chanel
It’s likely to be difficult for the Chanel enthusiast who is used to buying many bags each year, or at the very least able to not be snubbed and upset by this latest restriction.
With the massive price increases of Chanel prices in the past couple of years, at the very least, the possibility of purchasing was mostly on one’s wallet and to a certain degree, the availability of items.
It’s natural to be the object of this new policy, but we think something more sinister is behind this policy which is an attempt to prevent or limit the expanding market of retailers who profit from popular Chanel’s iconic bags.
@el4bz
We’ll keep you informed on this topic as news develops. What will this mean to how you play the Chanel strategy for your business?