Chanel may limit purchases to open private stores for top customers

Chanel could limit customers' purchases as the company heighten its grip on product distribution amid the strong demand. The French luxury fashion house said that for this, it may duplicate and apply the same purchase limits on its quilted Classic Flap handbag to its other high-end products.

Chanel may implement this limiting of purchases in more countries and in more countries, as per Reuters. Philippe Blondiaux, Chanel's global chief financial officer, clarified that the limits will not be imposed worldwide and are only aimed at protecting customers and preventing bulk buying.

Analysts stated that the company is making this move to make its brand even more exclusive. This exclusivity is also expected to help Chanel combat the booming resale market for luxury items.

"We have sometimes to limit the number of items a single client can buy," Global CFO Blondiaux said in an interview when asked about a website that said it will only allow customers to purchase two Chanel Classic Flaps a year. Based on the report, these luxury bags can cost $10,000 each.

He added, "It can be implemented on certain product ranges and not only the flap bag. It could impact some items which are in hot demand and fortunately, or unfortunately, there are quite a lot at Chanel, so this is the kind of measure which we could implement in different countries at times."

In South Korea, Chanel is already limiting the sale of the said bag as there were always long queues to have it. It was said that people start lining up outside department stores in Seoul before dawn so they can sprint to the Chanel store as soon as the mall opens and buy the most-coveted bags.

To show how serious things have turned out, resellers told Reuters that some people even hire "line standers" who are paid up to $125 to line up early for the buyer. These people queue in long lines on behalf of the buyer, so they can be one of the first to enter the store.

Meanwhile, Business of Fashion reported that Chanel would be opening private stores for its top customers as its sales shot up 50% amid the pandemic. Blondiaux said that they are planning to launch dedicated boutiques for its top-spending clients as the company's sharp growth risks overcrowding its luxury outlets.