The luxury crash all over the world has shown that these leather sacs are probably not worth the price they’re asking for, especially in 2024 pricing. The escalation of prices for these bags for you to keep your things in, has apparently affected major conglomerates as people are not shopping as much as they used to.
Chanel bags losing more than 50% of value
A video done by China Observer states that a brand new Chanel bag that cost 50,000 Yuan (US$7,000) can be found for under 45,000 Yuan (US$ 6,300). And there are a number of bags that are brand new, that are being resold for under 10,000 Yuan (US$1,400). Mind you, there are no new bags from this particular brand that would only cost US$1,400.
Furthermore, it appears that other brands are hit just as bad as their bags too have lost value. A Balenciaga bag is apparently being sold for 40% off the current retail price in China, and that particular model, the hourglass croc embossed is one of their flagship lines.
A similar thing is happening in South Korea. The Chosun states, French luxury brand Chanel’s annual sales in South Korea exceeded 1 trillion won last year, but its operating profit dropped over 30%, as per Chanel Korea’s April 16 audit report.
Chanel Korea’s 2023 sales reached 1.7 trillion won ($1.2 billion), a 7% increase from the previous year. However, operating profit fell 34% to 272 billion won, and net profit decreased 29% to 219.7 billion won. CFO John Hwang attributed the profit drop to increased investment in branding and human resources post-pandemic.
It has gotten to the point that users claim an authentic piece from the brand looks worse than a fake replica version. Seemingly, consumers are focusing towards newer brands that are high end but not as expensive as the traditional fashion houses.
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