Have you ever wondered if Chanel is cheaper in Paris than in London? The answer is yes, but with a caveat. Let’s dive into the details.
Why Paris?
Paris is the birthplace of Chanel, and the city has a special place in the brand’s history. It’s where Gabrielle “Coco” Chanel opened her first boutique on Rue Cambon in 1910. Today, Chanel still maintains its headquarters on this street.
The Price Difference
The price difference between buying Chanel items in Paris versus London is due to exchange rates and taxes. As of August 2021, one euro is equivalent to around 0.85 British pounds. This means that if an item costs €1000 in Paris, it would be around £850 in London.
In addition to exchange rates, France has a lower value-added tax (VAT) rate than the UK. The VAT rate for luxury goods in France is currently 20%, while it’s 20% for all goods and services in the UK.
Example:
Let’s take the classic Chanel flap bag as an example. In Paris, the medium size costs €5,200 including VAT.
With today’s exchange rate, that would be around £4,420. In London, the same bag costs £4,980 including VAT.
Other Factors to Consider
While buying Chanel items in Paris may seem like a no-brainer for cost savings, there are other factors to consider. For one thing, not all items may be available in all locations. Additionally, you’ll need to factor in travel costs and time when planning your shopping trip.
Conclusion
In conclusion, buying Chanel items in Paris can be cheaper than buying them in London due to exchange rates and taxes. However, it’s important to consider other factors before making a decision. Happy shopping!