Chanel cuts price of handbags 20%

In an unusual move, French fashion house Chanel will lower the prices of its handbags by 15-20 percent in South Korea to boost weak domestic consumption, the company said Wednesday.

Chanel will start lowering the price of three of its most popular lines ― the Boy Bag, the 11.12 and the 2.55 ― on April 8.

The move comes less than a year after Chanel raised the prices of some accessories by 5-15 percent in June and November.
 

“Chanel has continuously raised its price tag in the past, and now it’s lowering it to fight the economic slump,” said a Chanel store staff member in Seoul.

South Korea is one of seven countries where handbag prices will decline, alongside Hong Kong, China, Vietnam, Thailand, the United Arab Emirates and Russia. The prices will remain unchanged in Japan, the U.S., the U.K. and Canada, according to a Reuters report.

Industry watchers said Chanel’s price cuts go in line with the growth slowdown of luxury brands in the last few years.

“Consumers have turned their backs to luxury labels such as Hermes and Chanel as they have raised their prices ridiculously over the past decade,” a marketing official from Hyundai Home Shopping said.

By Suk Gee-hyun (monicasuk@heraldcorp.com)