Some time ago, I was working on a magazine cover shoot and the good people at Chanel office in Hong Kong, sent across a few accessories on loan for the day. While we went on location, Tasha Ling, my most frequent collaborator, stylist, art director, placed the bags in its own seat. The sort of reverence most in fashion have for the (overused expression-) iconic brand. If ever I've seen something handled with white gloves LITERALLY, it's the range of accessories from the Parisian house.
Chanel (and Hermès!) have demonstrated remarkable resilience and pricing power in a challenging luxury market, particularly in Greater China, even as many peers face stagnation or declines.
Over the past five years, Chanel has aggressively raised prices on its iconic handbags. A medium Classic Flap, which retailed around US$5,800–$6,500 in 2020–2021, reached approximately US$11,300 by 2025, representing a near-doubling (roughly 90–100% increase depending on exact timing and market). Further modest hikes (4–5%) continued into 2025–2026, with the medium Flap hitting US$11,300–$11,700+ in the US/Europe. Chanel cites rising costs, craftsmanship, and exclusivity, positioning bags as investment pieces akin to fine jewelry.
This strategy has paid off amid broader luxury slowdowns in China post-pandemic, driven by economic pressures and shifting consumer sentiment. While many brands saw double-digit declines, ultra-luxury names like Chanel and Hermès retained stronger demand among high-net-worth buyers seeking timeless status symbols. Jing Daily has noted Chinese consumers prioritizing “dream bags” from Chanel and Hermès over more accessible or trendy labels.
Chanel’s 2025 results highlight this outperformance. The company reported revenues of US$19.3 billion (up 2% from 2024’s $18.7 billion dip), with operating profit rising 5%. Asia-Pacific (nearly half of sales) was roughly flat to slightly down (-0.6% to -0.8%), but Mainland China, Hong Kong, and Taiwan turned positive in Q4 2025, with momentum into 2026. Investments in Shanghai’s Plaza 66 and Hong Kong boutiques underscore commitment to the region. US demand led growth (+7.2%).
Hermès similarly outperforms, fueled by ultra-high-net-worth Chinese buyers, controlled supply, and experiential retail. Jing Daily coverage emphasizes its resilience in Greater China despite sector headwinds.
In contrast, broader luxury groups (e.g., LVMH, Kering) reported softer or negative growth in China/HK amid cautious spending. Chanel and Hermès benefit from scarcity, heritage, and aspirational pull—qualities that sustain pricing power and resale value even as entry-level luxury cools. BOF and Jing Daily analyses position them as winners in a recalibrating market, where exclusivity trumps volume.
While sustained price hikes risk alienating some buyers (with occasional quality or “exploitative” critiques in Chinese discourse), strong HNW demand and strategic Asia investments suggest continued strength for these maisons in Hong Kong and Mainland China.
