Why Chanel Is Raising Prices On Its Most Popular Bags
- Chanel is raising prices by 6 percent on several popular handbags on Nov. 1, including Timeless Classic, 2.55 and Boy Chanel
- The increases, first reported by Jing Daily, reflect rising production costs and strong demand
- Asia is on track to surpass Europe as Chanel’s biggest market
Luxury brands raise prices all the time, but the timing of Chanel’s latest hike takes some guts. Fears about the longevity of China’s spending boom have hammered shares of brands like Prada and Gucci-owner Kering. Privately held Chanel is sending a different message: that its brand is still undervalued. Chanel may feel its size and reputation grant some immunity from the ups and downs of the global business cycle.
Tariffs Begin to Bite
- Tapestry Steve Madden likely to address concerns about tariffs in financial results due Tuesday
- The Trump administration slapped a 10 percent tariff on Chinese leather goods in September, part of a broader trade war between the US and China
- Kering and Moncler said this week that Chinese spending remains strong
Last week, Kering and Moncler offered some solace to fashion brands worried China’s slowing economy, a customs crackdown, an escalating US-China trade war or all three would crater sales. Tapestry and Steve Madden are unlikely to break from that consensus when they report results Tuesday but could offer new details on the impact of tariffs that starting in September raised the cost of handbags, belts and other leather goods imported from China by 10 percent.
Cardi Band Fashion Nova: A Match Made in Lycra Heaven
- Cardi B’s collection for online fast-fashion retailer Fashion Nova drops in November
- The collection is a milestone for both (Cardi B’s first fashion line, Fashion Nova’s first celebrity collaboration)
- Fashion Nova cracked top 10 trends for upper-income women in latest Piper Jaffray teen survey
Fashion Nova’s first celebrity collaboration couldn’t be more on the brand: Cardi B is the queen of the #NovaBabes, the army of Instagram influencers who have powered Fashion Nova from an obscure Los Angeles clubwear retailer into an online fast-fashion giant. Fashion Nova built its business by churning out hundreds of affordable clubwear and streetwear looks weekly and hyped by thousands of paid and unpaid fans on social media. The Cardi B collection is meant to broaden the brand’s reach.
“Prada is the poster child for ugly chic. Their Cloudburst sneaker may not be as hyped as the Balenciaga Triple S or Gucci Sega Crystal but it’s won its fair share of new fans. The relaunch of classic archive prints and shoes, as well as Linea Rossa (which have recently just hit stores), will surely maintain the momentum.”