Chanel Cuts Prices of Hand Bags in South Korea for 1st Time
D-Bo , March 19, 2015, 10:06 a.m.
French luxury brand Chanel cut prices of some handbags in Korea for the first time. The company said Wednesday that the cut was implemented on Tuesday and the range is between 15 to 20 percent.
This has brought down the price of the medium-sized 2.55 Vintage bag from W7.15 million to W600 million. The Classic fell from W6.43 million to W5.33 million and the Boy Chanel from W6.81 million to W5.24 million.
Industry insiders say it is very unusual for Chanel, which has never offered discounts on its products, to reduce prices of popular items. Chanel Korea said that the change is to adjust price gaps between countries due to the weakening euro, and the luxury brand will do the same in other parts of the world in April.
Customers who purchased Chanel bags up to 15 days before the price cut can get a refund. But many believe that the price cut is largely due to sluggish demand in the country, and increased competition from rival brands such as Gucci, Prada and Mulberry. Gucci and Prada released bags made of cloth instead of leather and smaller versions of popular bags to reduce prices.