Was I the Only One Unaware? ... The "No Sale" Chanel Event Luxury Enthusiasts Eagerly Anticipate [Luxury World]

Markdown Starts August 6

VIPs First, General Customers Later

A "Quiet Markdown" Targeting Both Exclusivity and Inventory Efficiency

"Chanel never goes on sale."

The ultra-exclusive luxury brand Chanel is rarely included in department store promotional events or coupon offers, even as it raises the prices of its signature handbags every year. This so-called “No Sale” policy is considered a core strategy to maintain the brand’s scarcity and price competitiveness.

However, there are exceptions to this rule. Chanel carries out "markdowns," where prices on select products are reduced at the end of each summer and winter season.

According to industry sources on August 2, this year’s summer season markdown event is scheduled to begin at major domestic department stores starting August 6. Although there are no separate advertisements or official announcements, this event is something luxury enthusiasts await each year.

Chanel store in downtown Seoul. Photo by Yonhap News

In the retail industry, “markdown” typically means a general discounting policy to lower sales prices. However, in the luxury market, it means something different. Instead of offering brand-wide seasonal discounts, only specific items from a recently concluded season see their prices selectively reduced. Routine discounting is avoided because it is believed to undermine brand value and exclusivity.

Each luxury brand takes a slightly different approach with its discount policies. Louis Vuitton and Hermès are leading examples of "No Sale" brands that essentially do not participate in official seasonal sales. On the other hand, brands such as Prada, Miu Miu, and Dior hold end-of-season sales primarily for seasonal apparel and shoes. Chanel’s strategy falls somewhere in between. While it strictly maintains regular pricing for signature leather products such as the Classic Flap Bag and 2.55 Bag, it selectively offers price reductions on highly seasonal items such as clothing, shoes, and accessories.

The main reason for markdowns is inventory management. Like other luxury brands, Chanel introduces a new collection every season. Spring/Summer (S/S) items need to be cleared out to make room for Fall/Winter (F/W) arrivals. Particularly for highly seasonal pieces like apparel, sandals, and accessories, it is more efficient to sell them at a certain discount than to store them until the following season.

Holding inventory for an extended period increases storage costs and can diminish the value of the merchandise. However, in the luxury market, price is considered a core asset that defines brand value. That is also why the industry carefully monitors the “full-price sell-through,” or the share of products sold at regular price, as a key metric. Frequent discounting can lead consumers to expect even lower prices with a bit of patience, causing them to delay full-price purchases and ultimately undermining the brand’s value and profitability in the long term.

Chanel Classic Flap Bag. Screenshot from Chanel website

Discounted items typically include apparel, shoes, sandals, seasonal accessories, costume jewelry, and scarves. While discount rates vary by item, they are generally reported to range from 30% to 50%. Markdowns usually start at about 30%, with further reductions possible depending on inventory levels. In contrast, signature leather goods such as the Classic Flap Bag, 2.55 Bag, Coco Handle, Chanel 22, and other iconic handbags and wallets are essentially excluded from markdowns, to preserve pricing integrity for the brand’s most recognizable products and to uphold the principle of regular pricing.

Another reason Chanel markdowns are perceived as “rare discounts” is in how they are conducted. Chanel does not officially announce markdown schedules through its website or advertising. Instead, sales associates at stores typically notify existing VIP clients of eligible markdown products individually before opening sales to the general public. As a result, most popular items are often sold out before they become available to regular customers. Many consumers are unaware that markdown events even exist. Conversely, those who get advance information line up in front of department stores before they open on the first day in an attempt to secure the limited stock — a scene that repeats every year.

Industry insiders explain that this strategy is aimed at maintaining trust in the brand’s pricing. As one industry source put it, “Luxury brands sell not only products but also trust in their prices. If the regular pricing principle is undermined, consumers may delay purchases, weakening the brand’s value. That is why markdowns are implemented in a highly restricted, VIP-centric manner.”

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