Chanel Price Increase Report June 2018

chanel-price-increase-report-june-2018

It’s the perfect time again for the Chanel Price Increase Report for June 2018. A lot has happened since our previous report in March 2018. But everything will be shared in details soon.

Here’s a quick summary:

  • The Chanel prices decreased significantly in Malaysia
  • The Classic Bags have increased in prices in Hong Kong
  • The Wallet On Chain Bag and Classic Wallets went up in Australia
  • A little price adjustment occurred in Singapore
  • Minor price changes have occurred on several handbags in Canada
  • Europe and United Kingdom prices remained the same
  • United States prices haven’t changed at all
  • A few bags have increased in prices in Japan
  • We updated all Chanel prices of China
  • We added Chanel prices of Korea in all of our pages

The Chanel Price Report 2018 Overview

1. Chanel Price Decreased In Malaysia

Chanel prices decreased in Malaysia on 1 June 2018.

The Chanel prices in Malaysia dropped like a rock after 1 June 2018. And it has nothing to do with the policies of Chanel, but it has everything to do with the new government regulation and the consumer tax.

The consumer tax is also known as VAT (value added tax) in Europe. Or as GST, which stands for goods and service tax. Basically, there are all the same. Consumer tax = VAT = GST.

1a. Malaysia abolished the consumer tax

On 1 June 2018, the Prime Minister of Malaysia decided to remove the consumer tax permanently with support of the citizens. A lot of Malaysians has complained about the consumer tax and that it was increasing the cost of living in the country.

The consumer tax was 10% in 2008, it went down to 6% in 2011 and today it’s 0%*.

The new tax law also means that all goods are cheaper now. So it’s not only Chanel products but also other high fashion products like those from Louis Vuitton, Dior, Celine Prada and so on.

The removal of the consumer tax is both advantages for the citizens and tourists. The citizens enjoy lower priced products, thus saving them a lot of money. But as a tourist we might think that we can’t take much advantage of this new policy, because we didn’t need to pay for the consumer tax anyway – we were eligible for tax-refund.

But this is not true. According to our calculation, the Chanel prices decreased way below the 6% consumer tax. Which means that the prices are even lower than before.

Read on and we will give you a full detail of the calculation.

1b. The 0% GST for citizens

Well, not much to say here right? Malaysians might not need to travel much abroad anymore to buy handbags for lower prices.

And there is something even more surprising. The prices of Chanel products are not only deducted from the 6% consumer tax, but the new prices are even much lower than that.

More about this subject later on…

1c. The 0% GST for tourists and non-permanent foreigners

Before 1 June 2018, when the consumer tax (6%) was still enforced, (non-permanent) foreigners and tourists could simply apply for tax-refund and claim the tax back.

But now that there is 0% GST, what has changed? We might think that nothing has changed, except that we don’t need to apply for tax-refund anymore. No more filling documents, no more going through the hassle.

But it’s more than that. We also take advantage of the fact that we don’t need to pay for the agency commission anymore. You know, the agencies that help us process the tax-refund form? These agencies charge us a small percentage commission for doing the work. The commission is automatically deducted from our total amount of the refund, so we don’t actually feel it in our pockets.

Let’s do a calculation okay?

1d. Calculation: Chanel prices before 1 June 2018 after applying for tax-refund

In every calculation, we take the Chanel M/L Classic Flap Bag as an example.

The Chanel M/L Classic Flap price was 23800 MYR before 1 June 2018 (before the GST was abolished).

Chanel M/L Classic Bag
Chanel M/L Classic Bag retail price before 1 jun 2018 23800 MYR
Chanel M/L Classic Bag price before 1 jun 2018 after tax-refund 22655 MYR
Difference in RM 23800 – 22655 = 1145 MYR
Difference in % 4.81%

The price after the tax-refund is 22655 MYR and that’s an 1145 MYR (4.81%) tax-return.

You would get much more return if you do not need to apply for tax-refund and pay the agency for the service to help you process the tax documents. Let’s see how much you would have saved:

1e. Calculation: Chanel prices before 1 June 2018 without the 6% GST

In this calculation, we want to know how much commission we pay for the agencies that help us process the tax-refund form.

And to get that answer, we’re going to simply remove the 6% GST from the Chanel prices. But please pay attention because we’re going to use the Chanel M/L Classic Flap Bag price again BEFORE 1 June 2018.

In every calculation, we will take the Chanel M/L Classic Flap Bag as an example.

The Chanel M/L Classic Flap price was 23800 MYR before 1 June 2018 (before the GST was abolished).

Chanel M/L Classic Bag
Chanel M/L Classic Bag retail price before 1 jun 2018 23800 MYR
Chanel M/L Classic Bag price before 1 jun 2018 without the 0% GST 22452 MYR
Difference in RM 23800 – 22655 = 1347 MYR
Difference in % 5.66%

The price after the tax-refund is 22452 MYR and that’s a 1347 MYR (5.66%) tax-return. So if we compare the previous calculation with this calculation, we can conclude that the amount of tax-refund would be slightly higher.

Not that the commission we need to pay is ridiculous high. The commission is just around 202 MYR for a 23800 MYR handbag. That’s like $50 USD for a $6000 USD handbag.

But the point we want to make has to do with the next calculation.

Malaysia has abandoned the consumer tax (GST). So Chanel should priced their handbags accordingly by simply removing the 6% GST just like we did in the calculation above. Well, it’s more than that. And what we’ve discovered is kind-of positive.

1f. Calculation: Chanel previous prices without the 6% GST versus Chanel new prices

So let’s do a comparison. Let’s take the Chanel M/L Classic Flap Bag again with the old retail price without the 6% GST compared to the new retail price.

The old retail price = price before 1 June 2018. And we’re going to remove the 6% GST from the old price.

The new retail price = price after 1 June 2018.

Well, get ready for a suprise.

Chanel M/L Classic Bag
Chanel M/L Classic Bag price before 1 jun 2018 without the 0% GST 22452 MYR
Chanel M/L Classic Bag price after 1 jun 2018 20450 MYR
Difference in # 22452 – 20450 = 2002 MYR
Difference in % 8.92%

LOL.

Can you see what we mean? The Chanel prices have dropped even lower. When we deduct the 6% GST from the old price, the new price is even lower than that.

For the Malaysians – congratulation! Not only don’t you need to pay for the consumer tax, but the Chanel handbags are even lower-priced than ever before.

For the tourists and travellers in Malaysia – this is even better than applying for tax-refund. Shop until you drop and take full advantage of this beautiful moment.

But okay ladies, it’s now the moment we’ve been waiting for. The full report on the new prices in Malaysia versus the old retail prices.

1g. Chanel New Prices in Malaysia

Below are the latest Chanel Classic Bag prices in Malaysia. Most of the classic bags including the boy bags were decreased by 14% or more. Even the Wallet On Chain Bag and the Wallet Bag prices went down as well.

The Classic Flap Bag

The Classic Flap Bag New Prices Previous Prices
Chanel New Mini Classic Flap Bag 11920 MYR 13870 MYR
Chanel Small Classic Flap Bag 18220 MYR 21200 MYR
Chanel M/L Classic Flap Bag 20450 MYR 23800 MYR
Chanel Jumbo Classic Flap Bag 22780 MYR 26500 MYR
Chanel Maxi Classic Flap Bag 24750 MYR 28800 MYR


The Classic Flap Bag Change in %
Chanel New Mini Classic Flap Bag -14.06%
Chanel Small Classic Flap Bag -14.06%
Chanel M/L Classic Flap Bag -14.08%
Chanel Jumbo Classic Flap Bag -14.05%
Chanel Maxi Classic Flap Bag -14.06%


The Chanel Classic Boy Bag

The Classic Boy Bag New Prices Previous Prices
Chanel Mini Classic Boy Bag 14290 MYR 15150 MYR
Chanel Small Classic Boy Bag 16700 MYR 19450 MYR
Chanel Old Medium Classic Boy Bag 18170 MYR 21150 MYR
Chanel New Medium Classic Boy Bag (Medium Plus) 20270 MYR 23590 MYR


The Classic Boy Bag Change in %
Chanel Mini Classic Boy Bag -5.68%
Chanel Small Classic Boy Bag -14.14%
Chanel Old Medium Classic Boy Bag -14.09%
Chanel New Medium Classic Boy Bag (Medium Plus) -14.07%


The Chanel Wallet On Chain Bag

We want to comment on the Wallet On Chain Bags. The Classic WOC’s are down as much as the Classic Flap Bags And the Boy Bags. But the upcoming classics like the Trendy CC WOC are not really cheaper. In fact, the Trendy CC WOC only decreased by 0.56% and the Golden Class CC WOC by 3%. Not really exciting right?

The WOC New Prices Previous Prices
Chanel Classic Quilted WOC 8520 MYR 9900 MYR
Chanel Classic Boy WOC 9030 MYR 10460 MYR
Chanel Trendy CC WOC 12430 MYR 12500 MYR
Chanel Golden Class CC WOC 11120 MYR 11470 MYR


The Classic Boy Bag Change in %
Chanel Classic Quilted WOC -13.94%
Chanel Classic Boy WOC -13.67%
Chanel Trendy CC WOC -0.56 %
Chanel Golden Class CC WOC -3.05%


The Classic Wallets And Seasonal Bags

Well ladies, more good news. The Chanel Classic Wallet Prices have decreased as well and at the same rate as the Classic Bags. So some Wallets dropped by more than 13%, but there are also Classic Wallets that dropped only around 6%.

And we’re not finished yet (yeah!!)

The seasonal bag prices have decreased as well. But we’re not going to cover them all here as we don’t want you to be information overloaded. But here’s a thumb of rule: ‘the Seasonal Bag Prices dropped by more than 5.66%’.

1h. The future Chanel prices in Malaysia

So we’re amazed about the price decrease in Malaysia, but you know what they say: ‘nothing last forever’. Even tough Malaysia abolished the consumer tax, but what about the future? Will it be like this for eternity? We should shop more in places where there is no consumer taxes right?

Not so much!

Let’s take two famous cities as an example; Hong Kong and Dubai. Both cities are tax-free, which means there are no consumer taxes, GST or VAT or whatsoever on any products. But tax-free doesn’t mean translates to ‘cheaper high fashion products like Chanel Bags’.

So the answer is no! In fact, the prices are much steeper than most places.

When a country or city is tax-free (or duty-free), it doesn’t automatically equals to cheaper Chanel Bags. And in the past we’ve seen Chanel enforce what’s called ‘price harmonization’, which means that the prices are harmonized in different countries so that the prices remain the same in the region. Take the United Kingdom and Euro countries as an example, they’re neighbors right? So it shouldn’t be that the Chanel products are cheaper in United Kingdom and more expensive in the Euro countries. It shouldn’t make sense. They should be the same. So Chanel tries to make the prices of these two locations the same. So that people from Paris don’t need to fly to London to purchase a cheaper bag.

But what will happen with the Chanel prices in Malaysia in the future? By looking at the past, we think that the prices will eventually go up, and get harmonized.

So enjoy the incredible prices in Malaysia, now that we still can!

2. Chanel Price Increase In Hong Kong

While the prices in Malaysia went down, the prices in Hong Kong went up. Again! According to our extensive analysis, the Chanel Classic Bag and the Chanel Classic Boy Bag Prices have increased by around 6%. The Wallet On Chain Bag also jumped by 5 to 6%. However, the Classic Wallet Prices remained the same and the upcoming classic handbags like the Trendy CC Bag, Coco Handle Bag or the Gabrielle Bag have remained the same as well.

The Classic Flap Bag

The Classic Flap Bag New Prices Previous Prices
Chanel New Mini Classic Flap Bag 23900 HKD 22400 HKD
Chanel Small Classic Flap Bag 36600 HKD 34300 HKD
Chanel M/L Classic Flap Bag 41100 HKD 38500 HKD
Chanel Jumbo Classic Flap Bag 45700 HKD 42900 HKD
Chanel Maxi Classic Flap Bag 49700 HKD 46500 HKD


The Classic Flap Bag Change in %
Chanel New Mini Classic Flap Bag 6.70%
Chanel Small Classic Flap Bag 6.71%
Chanel M/L Classic Flap Bag 6.75%
Chanel Jumbo Classic Flap Bag 6.53%
Chanel Maxi Classic Flap Bag 6.88%


The Classic Boy Bag

The Classic Boy Bag New Prices Previous Prices
Chanel Mini Classic Boy Bag 25400 HKD 25400 HKD
Chanel Small Classic Boy Bag 33500 HKD 28700 HKD
Chanel Old Medium Classic Boy Bag 36500 HKD 34200 HKD
Chanel New Medium Classic Boy Bag (Medium Plus) 40700 HKD 38100 HKD
Chanel Large Classic Boy Bag est.43623 HKD 40837 HKD


The Classic Boy Bag Change in %
Chanel Mini Classic Boy Bag 0%
Chanel Small Classic Boy Bag 16.72%
Chanel Old Medium Classic Boy Bag 6.73%
Chanel New Medium Classic Boy Bag (Medium Plus) 6.82%
Chanel Large Classic Boy Bag est. 6.82%


The Chanel Wallet On Chain Bag

The WOC New Prices Previous Prices
Chanel Classic Quilted WOC 17100 HKD 16000 HKD
Chanel Classic Boy WOC 18100 HKD 17200 HKD
Chanel Trendy CC WOC 22100 HKD 20900 HKD
Chanel Golden Class CC WOC 20200 HKD 18600 HKD


The WOC Change in %
Chanel Classic Quilted WOC 6.88%
Chanel Classic Boy WOC 5.23%
Chanel Trendy CC WOC 5.74%
Chanel Golden Class CC WOC 8.60%


The Seasonal Bag Prices

The goods news is that the prices of the seasonal bag have remained the same. So no price increase for the Spring Summer 2018 Collection and the Pre-Fall 2018 Collection.

3. Price Increase in Australia, Singapore, Canada and Japan

In Australia, the Wallet On Chain Bag prices went up by more than 8%. And the Classic Wallets jumped by more than 6%.

In Singapore, there is a price adjustment of around 3 to 6% on the Classic Flap Bag, Classic Boy Bag, Classic Boy WOC and few Wallets.

In Canada, the same happened like in Singapore. The prices of the Classic Flap bag, Classic Boy Bag, the Boy WOC and few wallets jumped by around 3 to 4%.

In Japan, some wallets went up in price.

You can see the changes and the latest prices via here:


*source: tradingeconomics.com

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