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This week in the Luxury Briefing, a deep dive into Chanel’s strategies as it walks back price increases. Also, a chat with eBay’s new stylist, Brie Welch; a Ralph Lauren earnings recap; executive moves and news to know. For tips or comments, you can reach me at [email protected]
After raising prices by 59% between 2020 and 2023, Chanel is entering a new era. In 2024, the brand implemented a modest 3% price increase, signaling a sharp contrast with its pandemic-era strategy. That shift wasn’t voluntary. The luxury market cooled, consumer pushback intensified, and Chanel’s volumes dropped by 7% year-over-year, according to estimates from investment management firm Bernstein. The company’s 2024 earnings, reported May 20, show a 4.3% decline in revenue to $18.7 billion, while operating profit fell by 30% to $4.5 billion. Chanel’s pricing power, once unrivaled in soft luxury, hit a wall.
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