Chanel Imposes Per-Person Purchase Limits on Korean Flap Bags, "May Expand Items and Countries"

Chanel CFO: "Not Implemented Worldwide"

[Image source=Yonhap News]

[Asia Economy Reporter Cha Min-young] Philippe Blondiaux, Chief Financial Officer (CFO) of French luxury brand Chanel, hinted at the possibility of expanding the purchase restriction policy on popular products in an interview with foreign media on the 24th (local time), stating, "We sometimes have to limit the number of products a single customer can buy."

Chanel is implementing a policy limiting the quantity of popular products that one person can purchase in certain regions, including Korea. Since October 1st last year, Chanel has restricted the number of certain items that can be purchased per person in Korea. The Timeless Classic Flap Bag and Coco Handle Handbag can only be purchased one per person annually.

CFO Blondiaux said, "This policy could apply not only to flap bags but also to other specific product lines," adding, "This may affect some high-demand products, and since Chanel has quite a few popular items, it could be implemented simultaneously in multiple countries."

In the luxury industry, purchase restrictions are measures to increase product scarcity and prevent reselling. While this strategy is common among several luxury brands such as Herm?s, there has been criticism that the domestic policy introduced by Chanel, which limits popular products to one per person per year, is excessive. CFO Blondiaux added, "Purchase restrictions are intended to protect customers and curb bulk buying," and emphasized, "It will not be implemented worldwide."

Blondiaux also mentioned that Chanel may raise product prices in July to respond to inflation caused by the weak euro. Chanel has raised prices four times since last year. The current price of representative handbags such as the Classic Flap Bag is double what it was in 2019.

Meanwhile, Chanel stated that as part of sanctions against Russia for its invasion of Ukraine, it limits the total purchase amount for customers residing in Russia to 300 euros (approximately 400,000 KRW). Chanel has closed 17 stores in Russia since Western sanctions began but continues to pay salaries to its employees there. CFO Blondiaux expressed hope for resuming business in Russia in the long term.