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Chanel typically reviews handbag prices twice a year, in March and September. In March, the company applied an average 8 per cent price increase on bags worldwide, chief financial officer Philippe Blondiaux said in an interview on Thursday. A classic medium-sized flap bag currently costs €9,700 (S$14,000) in France, or about €1,900 more than 18 months ago. By comparison, a Hermes 25-centimetre Birkin bag currently sells for around €8,000. A combination of increased unit sales and higher prices helped the luxury house boost sales by 17 per cent in 2022, he said, adding that price increases for its bags were in line with inflation. The Kelly bag maker increased product prices on average by 7 per cent in January.

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