In the Bag: Chanel and Hermes are Recession Proof

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.

The 7 Best Travel Bags To Rock This Summer, From Berluti to Ralph Lauren

 

Time to jet-set in style with an easy carry-on.

As the biggest brands in town drop the latest accessories, one common theme seems clear: everyone seems to be in the mood to travel. If you, too, have your sights set on distant horizons, these designer bags (don’t you dare call them man bags!) are luxurious, cavernous, and make for a timeless accessory to hop on several planes with. Bon voyage!

My selects, from Loewe to Gucci, Ralph Lauren to Berluti here, only at Robb Report Hong Kong. 

Outtakes: Mama Mia!! Hong Kong's most glamorous moms for a Mother's Day Special: With Alison Chan El Azar, Ana R and Louise Wong. And Sergio Rossi

Pls grab the May 2019 issue of Prestige Hong Kong for this gorgeous shoot with some of my fav ladies - and their kids. 

The feature and shoot 'In her Shoes' (thank you Sergio Rossi!) was uber stressful leading up to the day. 

But the munchkins made the day soooo much fun. Shout out to the super mums (btw every day is Mother's day - just sayin'!) Alison Chan El Azar, Ana R and Louise Wong.

Bags behind the baubles: Marcello de Cartier: Interview with Marlin Yuson, Creative Director for Cartier leather goods

Marcello de Cartier is a roomy accessory from a brand that's quietly into leather, writes P.Ramakrishnan.

Later this month, the glittering baubles and watches that line cases in Cartier's boutiques will be competing for the spotlight with Marcello de Cartier bags.

Marlin Yuson, creative director for Cartier leather goods, admits jewellery and watches are always going to be the main event. 'The bags are the supporting cast but an important character,' says the designer, who has worked with Ferragamo, Polo Ralph Lauren and Calvin Klein, and spends her time between Florence and Paris.

The fact that the brand is not known for its leather goods has long represented a challenge for Yuson. 'In a way we are battling a common perception of the brand. Most people don't realise that Cartier does leather bags,' she says. 'If you weren't part of a generation that knew that Cartier did leather products, then the Marcello bags would come as a surprise. I still get that, even after 10 years with the brand. There's no bag campaign and there won't be. The leather goods are part of the family, but they'll never be independent products.'

Yuson says Cartier bags were considered 'it' bags in the '70s and '80s, modelled by celebrities such as Tina Turner. 'Then it stopped. Cartier did other dressy bags but very, very classic bags. And then the whole handbag accessories craze took over.'

When designing the Marcello, Yuson knew what a contemporary bag should - or rather, shouldn't - be. 'I really don't see it as an 'it' bag, not something as ephemeral as what's in trend,' she says. 'I didn't want it to be too old-fashioned and seem like a relic, either. I didn't want to stick a panther or leopard on it; that would be too easy. I haven't put in animal prints, either, yet. And it's really not for 'ladies who lunch'.'

Yuson decided to maintain the hard corner of Cartier's earlier bags. 'I wanted to keep that iconic bookend sort of arch. The bags needed volume and pockets to be practical for the woman on the go.'

Yuson says that she doesn't have a particular muse but she'd love to see Alexa Chung or IMF chief Christine Lagarde carrying her bags. 'Strong, confident, influential women who didn't sacrifice their femininity in their business,' she says. 'Women on the move, who have children, or are working ... they're the ones I hope will embrace the bag, for its practical purposes.'

The Marcello is a large bag with the interlocking Cs logo that will be joined in stores with a series of evening clutches in September.

Cartier's first evening bag came out in 1906. 'Initially, the evening bags were very much about jewellery,' says Yuson. 'The finishings on the bags were precious, and the bags themselves were one-off pieces for royalty and unique order customers.'

She says that when she was creating the designs, she carried the bags around during her travels to observe their functionality.

'Translating the Cartier bag to the present and keeping that identity - that luxury feel to it - is hard, especially where there are so many fashion brands around,' she says. 'I stuck to a family of colours to keep it coherent: red and black, tobacco or cognac.'

The primary inspiration for the bags came from the materials, she says.

'Looking at the quality, texture and colours, concepts come to mind,' says Yuson. 'Even something as trifling as a buckle becomes a starting point. Texture is really important. We don't have too many prints, so the material has to resonate.'

P. Ramakrishnan
Jul 06, 2012

P. RAMAKRISHNAN

Published: 12:00am, 6 Jul, 2012