CHANEL'S NEW QUOTA POLICY IN 2022Posted on
After months of rumours circulating that the House of Coco will be implementing limits on purchases for its popular Classic Flaps, Chanel has officially disclosed that it will indeed be implementing a quota system.
Details of the new quota policy include:
It will begin on June 7th, two days before the 22A Metiers d'Art collection launch.
The policy will affect all Classic Flaps and Classic Mini Flaps of any colour and size.
The brand-wide policy will restrict each client to only two Classic Flap Bags per year.
At the time of writing, the quota system will not be affecting styles such as the Chanel 19s, Coco Handles, the Trendy CC, and Boy bags.
The quota policy is confirmed to be implemented in the US, but it is widely suspected to be effective globally. In addition, the new quota applies to the fiscal year 2022, which means that clients who have already purchased two Classic Flaps this year have already reached their quota.
Is Chanel imitating the exclusivity level of Hermes?
Much like the hard-to-get Hermès Birkin and Kelly, it is no question that Chanel's Classic Flaps will soon reach new heights of exclusivity. Like Hermès, each client can choose between buying only 1 Birkin, Kelly, or Constance in one fiscal year - if you're even offered one.
Chanel is a highly esteemed brand known for its quality and legacy; they are known to create and produce impeccably made bags that surpass the test of time. However, many luxury aficionados have expressed dissatisfaction with the new quota policy when considering the backstory and rigorous crafting process of Hermes products. For example, Hermes's Birkin's and Kelly's are famously known to be handcrafted by artisans that train for several years – sometimes even up to 10 years – before being allowed to craft one of these highly covetable bags. In addition, every Hermes bag is made by one artisan from start to finish – the process could take up to 24 hours to craft one single bag.
On the other hand, Chanel's Classic Flap quilted diamonds are known to be machine-stitched for an immaculate look. In addition, Chanel's artisans may use their hands to apply certain embellishments or tighten metal closures. As a result, the difference in production methods has led some to believe that the price of a Hermes Birkin or Kelly is justified, while the same can't be said for a Chanel Classic Flap.
With the new quota system in place, many collectors may find their limited ability to expand their collections frustrating. Many would have to carefully think about which Classic Flaps they would invest in per year. It may be easier to score a Classic Flap on the resale market – but they may soon be so sought after that it is advisable to purchase one before they become too scarce.
What does this mean for the resale market?
In an attempt to elevate the status of the Classic Flap, Chanel has released fewer new bags on the market while simultaneously introducing periodic price increases. As a result, Chanel's Classic Flaps have become much more sought-after in both the resale market and retail stores over recent years.
Implementing the new quota policy spells good news for those considering reselling their Classic Flaps. A value hike for the Classic Flap is highly possible, considering the scarcity of supply in Chanel boutiques.
Certain Chanel Classic Flaps in pristine condition could fetch premium pricing depending on style, colour, and material. Classic colours and caviar leather garner higher prices due to their timeless nature, while on the other hand, brighter colours like red and lambskin leather are not as high in demand and could sell less than retail.
Though many Chanel fans suspect that the new quota was created to limit competition with the resale industry, many also believe that Chanel could be attempting to draw more attention to its other bag styles.
For the brand's Cruise 2023 presentation, a few Classic Flap designs were shown, with more handbag accessories being the collection's focus. Even the SS22 Chanel Heart Bags appeared to be the collection's highlight. The Chanel Medium Heart Bag was resold for upwards of 10,000 CAD in the resale market. In comparison, the original retail price was 5500 USD (7110 CAD) – a 40.65% markup difference that can only be explained by the bag's limited edition nature and high demand.
If the Chanel Classic Flaps are unavailable, Chanel collectors could be inclined to buy other seasonal accessories and styles.
What are your thoughts on the new quota system implemented by Chanel? Does this deter you from purchasing a Classic Flap, or are you more eager to land your hands on one now?
Shop our selection of Chanel Classic Flaps here.