Chanel Bag Hoarding Operation... How Much Profit Can Be Made with 'Shatech'?

[Asia Economy Reporter Yujin Jo] As luxury brand Chanel raises prices by up to 17%, a Chanel investment craze, known as "Shatech" (Chanel finance), is sweeping the market. The investment mentality of "buying in advance is beneficial" has triggered a surge in consumer sentiment, leading to stockpiling of Chanel bags. Crowds of buyers have formed long lines in front of stores, and scenes of "open runs," where customers rush into stores as soon as they open, have been observed. So, is it possible for those who purchased Chanel bags before the price hike to resell their products at a significant profit?

Chanel has implemented price increases twice a year. Because the price hikes for Chanel products have been substantial so far, stockpiling has repeatedly occurred whenever news of price increases emerged. It was nearly impossible to enter stores due to the influx of buyers, and waiting lists often exceeded hundreds of people. Recently, as consumption, which had slowed due to COVID-19, began to recover, some popular products even experienced shortages. A fashion industry insider explained, "The Shatech craze this year seems to have been particularly intense due to compensatory consumption linked to COVID-19," adding, "The desire for value consumption, such as travel suppressed by social distancing, has translated into luxury consumption."

Then, what kind of profit can be made by reselling Chanel bags purchased before the price increase? In conclusion, the profit from stockpiling Chanel bags is very limited. This is because the resale prices of used Chanel bags do not correlate with the prices of new products. For example, even if a Chanel bag bought before this price increase rose by more than 4 million KRW after 3 to 4 years, the entire 4 million KRW price difference does not translate directly into profit.

The resale price of luxury goods is determined by the product's condition and the serial number, which contains information about the product's production and purchase year. Each Chanel bag has a serial number that includes the production year, and the resale price is set accordingly, meaning that holding onto the bag for a long time is not an ideal investment strategy. However, in cases like this recent rapid price increase over a few days, reselling the product immediately can yield a profit ranging from at least the original cost up to around 1 million KRW.

Chanel has raised prices several times a year, citing increased production costs. Starting today, prices for popular handbags such as the Classic and Boy Bag have increased by 7 to 17%. This is the first price increase in about seven months, following a roughly 1 million KRW increase for popular bags last October. With this increase, the Classic Medium handbag, priced in the 7 million KRW range, has jumped to the 8 million KRW range, with popular product prices rising by around 1 million KRW.

On the 12th, customers are lining up in front of a luxury store at a department store in Jung-gu, Seoul, waiting for it to open. Photo by Jinhyung Kang aymsdream@

This content was produced with the assistance of AI translation services.