When anyone thinks of luxury handbags, it’s natural to assume that a brand like Hermes, and its iconic Birkin bag, would be top of the list.
While that’s certainly true, there are also a host of other luxury handbag brands that can boast similarly eye-watering prices for their wares.
One of those brands is Chanel and, while the luxury brand may have been founded on its iconic perfumes and the classic “Chanel No. 5” scent, its handbags are also equally sought after.
So, why are Chanel handbags so expensive and what should we know about them?
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Attention To Detail And Premium Materials
Just like any of the other high-end handbag brands, the production of some Chanel bags requires an inordinate amount of attention to detail and precision.
This may be why the classic Chanel 2.55 handbag can cost in the region of S$15,000 per piece. The iconic Chanel bags are not mass-produced on an assembly line in a factory but rather handcrafted at Chanel’s Metiers d’Art workshops in Paris.
Chanel also uses premium materials such as quality and buttery-soft lambskin leather, calfskin leather and tweed fabric.
Attention to detail coupled with quality materials is rounded off with a lengthy process to produce the end product of a Chanel bag. It reportedly takes around 15 hours and 180 steps to produce the Classic 11.12 Bag, which is commonly known as the Classic Double Flap bag.
Creating Bags That Are Investments
One of the main reasons certain Chanel bags are highly sought after – and expensive – is that they are “timeless”. For example, you can purchase the Classic Double Flap bag a decade ago and carry it today and not be out of style.
Of course, the prestige that’s attached to Chanel also means that the bags have become investments in their own right – much like other luxury items such as a Rolex Submariner watch.
According to Sotheby’s, the Chanel 2.55 Bag initially retailed for around US$220 back in 1955. Now, the similar bag costs US$10,800 as of 2024.
If an investor had held the bag over that 69-year span, it would have ended up appreciating by a compound annual growth rate (CAGR) of around 5.8% over the entire period.
Over the past seven to eight years alone, the price of a Medium Chanel Classic Double Flap has increased to US$10,800, more than twice of its price of US$4,900 in 2016.
Quality, Timeless And Investment Appeal
Like any luxury items that have a massive appeal, Chanel handbags are expertly crafted using premium materials such as genuine leather.
Beyond that, some of them are also fashion items that can be adorned in any decade, and it seems like it won’t be going out of fashion any time soon.
One of the biggest reasons why Chanel handbags also continue to remain expensive is that some individuals view Chanel’s more classic handbags as investment items. That increases their value as the demand for them remains as high today as when it first debuted nearly seven decades ago.
As a result, some of the classic Chanel handbags can hold their value, and even increase it significantly, over time.
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