Chanel becomes one of the first brands to harmonise global pricing
Starting with three of its most iconic bags
Envisioning the brand's future, Chanel, is making moves to homogenise its prices across all of its worldwide boutiques. In this transparent digital age, and territory currency fluctuations, Chanel hopes to steady the pitch and bring pricing into line. As of April 8 the French fashion house is to align its sticker prices for three of its most iconic handbags, which will mean an increase in Europe and a drop in Asia.
The ultimate goal is to keep prices within a 10 per cent cap above or below the global benchmark. Where as currently prices can be almost double between Asia and Europe. For example when the new alignment comes into play on April 8, the new 11.12 bag, which is one of the first three to use the global system, will increase in Europe from 3,550 euros to 4,260 euros, where conversely in China the bag is now 38,200 yuan, and it will drop to 30,000 yuan.
Bruno Pavlovsky, Chanel's president of fashion has said that these measures are to help establish better relationships with customers and to ensure that people are "seduced by the brand and by the products and not just led by these price differentials," he said. "It's to prepare the brand for the next 10 to 15 years. It's more about the future than the past."
Currency discrepancies have opened up a parallel market that Chanel hopes the new globally benchmarked pricing will help to shut down. The parallel market creates confusion about which products are genuine and which are not: "We want to be very clear that we are not part of that," Pavlovsky said in an interview. "There is no way to go against that but to have the prices aligned."
The plan is to implement the plan gradually across all fashion categories, with the goal of full alignment by the end of this year. Prices in the US, Canada and UK are already evenly aligned and won't require much altering. However Brazil will have to be excluded from the planned deadline as it subject to high export duties.