(Yicai Global) Nov. 4 -- Chinese consumers' desire for Chanel products may not seize despite the rising prices due to a simple psychological trick amid the Covid-19 pandemic, according to experts.

The prices of Chanel’s classic handbags have gained more than 20 percent this year, including a 15 percent hike in May, according to the French retailer's Chinese website. However, the increases do not affect new collections that may now appear more affordable and in line with the European prices while international travel is limited during the Covid-19 pandemic.

Some price-sensitive consumers are attracted to the balancing price points between China and Europe amid restricted overseas travel and the limited business of Chinese cross-border buyers, also known as daigous, the Beijing Business Today reported yesterday, citing He Junming, director of Savills Guangzhou Stores.

Moreover, news about the imminent price hikes was not left unnoticed. Rising luxury prices may cause consumers to rush to stores to purchase before prices increase, according to a report by the Yaok Institute.

Boston Consulting Group predicted in a report in July that the demand for luxury products in China will rise up to 10 percent this year from a year ago as the world's second-largest economy remains resistant in the face of the Covid-19 pandemic.

Raising prices makes sense in the short-term but not all the time. Retailers of luxury goods have boosted prices during the pandemic to maintain brand value, increase profits, and promote sales, Zhou Ting, Yaok Institute's chief executive, told the Beijing Business Today.

However, continuous price hikes will inevitably cause some consumers to skip the purchase, resulting in uncertainties for the brands in the long-term, according to the Yaok Institute.

Editor: Emmi Laine