French fashion house Chanel said it plans to hike prices in Europe and cut them in Asia to counter the decline of the euro and discourage customers from buying fakes. The world's second-biggest luxury brand behind LVMH's Louis Vuitton will start by standardizing prices across its markets from April 8 on three of its most well-known handbags - the 11.12, the 2.55 and the Boy styles.
"This decision will enable us to offer our products to all our clients at a harmonised price wherever they are in the world," Chanel said in a statement on Tuesday. The move will also help Chanel fight against "parallel re-sell markets that are facilitated by price differences and hurt the business, the image and exclusive character of the Chanel brand," it added.
Worldwide prices will not fluctuate more than 10 percent above or below the global euro benchmark, said Bruno Pavlovsky, Chanel's president of fashion. The price of the 11.12 and 2.55 models will rise to 4,260 euros ($4,517) in April from 3,550 euros in Europe, while the cost of the Boy bag is set to rise to 3,720 euros from 3,100 euros, Chanel said. The prices of the bags will remain stable in Japan, the United States, Britain and Canada, and decline in Hong Kong, China, Korea, Vietnam, Thailand, Dubai and Russia, it said.
Chanel added that it would progressively standardise prices across other products this year.