In a rare behind-the-scenes glimpse, Chanel has opened the doors to one of its premier leather goods factories in Verneuil-en-Halatte, France. This move, part of the luxury brand’s strategy to highlight the artistry behind its famed handbags, comes in response to market challenges, including fluctuating luxury spending and scrutiny over rising prices. The $10,000 price tag of Chanel’s classic flap bag has long sparked curiosity, and now, the brand is shedding light on what justifies its cost.
A Legacy of Craftsmanship
Chanel’s classic handbag is one of the brand’s most revered creations, standing alongside its No. 5 perfume as an enduring symbol of luxury. Bruno Pavlovsky, president of Chanel SAS, emphasizes the importance of showcasing the skill and dedication involved in crafting each piece. While Chanel has long relied on a mix of independent suppliers and in-house production, it now manufactures two-thirds of its bags in company-controlled factories, ensuring strict quality control and preserving artisanal expertise.
Unlike competitor Hermès, which operates solely through its own workshops, Chanel maintains long-standing partnerships with independent manufacturers. This balance, Pavlovsky explains, helps the brand remain attuned to market trends while safeguarding traditional techniques.
Inside Les Ateliers de Verneuil-en-Halatte
The Verneuil-en-Halatte facility, a key production site an hour and a half from Paris, embodies Chanel’s commitment to sustainability and excellence. Established in 1990 and relocated to its current state-of-the-art premises in 2021, the 270,000-square-foot factory operates with an emphasis on environmental responsibility. Solar panels contribute to its energy supply, while spacious, well-lit workshops provide optimal working conditions for the 470 artisans employed there.
The production process of Chanel’s 11.12 handbag—a modern take on the 2.55 design introduced by Coco Chanel in 1955—unfolds across 180 meticulous steps. Unlike Hermès, where a single artisan crafts an entire bag, Chanel employs a collaborative approach, with around 30 specialists contributing to each piece. Artisans specialise in various stages, from cutting and assembling to finishing touches like braiding the signature leather-and-chain strap.

Inside Chanel’s Leather Atelier: The Craftsmanship Behind
Training the Next Generation
With craftsmanship at its core, Chanel invests heavily in training new artisans. The on-site training school at Verneuil-en-Halatte accepts ten apprentices at a time, providing hands-on education under the guidance of experienced mentors. Employees, who range in age from 18 to 65, often come from diverse backgrounds, including former florists and carpenters seeking a career shift. To counteract industry-wide labor shortages, Chanel recruits both young talent and individuals looking for mid-career transitions, aligning with broader employment initiatives in France.
The brand’s efforts to maintain a skilled workforce reflect a broader shift in employee expectations post-pandemic. Pavlovsky acknowledges that younger artisans demand better wages and flexible work conditions, factors Chanel must accommodate while upholding its commitment to quality.
Sourcing and Sustainability
Each Chanel bag is crafted from carefully sourced materials, with leather originating from traceable, sustainable supply chains in France, Italy, and Spain. The Verneuil-en-Halatte workshop houses an extensive materials archive, including 900 leather and fabric references and over 1,100 types of hardware and thread. Leather offcuts are repurposed for prototype development and shoe production, aligning with Chanel’s sustainability goals.
Beyond production, the facility features a dedicated research lab where materials and finished products undergo rigorous testing. A repair workshop ensures longevity, restoring well-loved bags, including those that have endured the wear and tear of daily life.
Bridging Heritage and Innovation
Chanel’s dedication to craftsmanship extends beyond tradition to continuous innovation. The design workshop at Verneuil-en-Halatte works closely with Chanel’s creative teams in Paris to develop seasonal collections, often incorporating novel materials like tweed and embroidery from the brand’s specialised craftsmanship hub, Le19M.
This commitment to fashion-driven leather goods sets Chanel apart. The workshop produces eight collections annually, keeping pace with Chanel’s ready-to-wear designs. Recent launches, including the 25-bag, have been backed by high-profile campaigns featuring global icons like Dua Lipa and Blackpink’s Jennie Kim.
The Future of Luxury Pricing
Chanel’s pricing strategy has been a topic of debate, with the Medium Classic bag rising from $5,800 in 2019 to $10,800 in 2025. The brand attributes these increases to inflation, raw material costs, and global price harmonisation. While the euro price is adjusted annually, currency fluctuations also play a role in determining costs worldwide.
Looking ahead, Chanel plans to enhance transparency further with digital product passports. These will provide consumers with detailed information on a product’s materials, origin, and environmental impact, in line with new European Union regulations. This initiative underscores the brand’s evolving approach—preserving heritage while adapting to modern expectations.
A Glimpse into the Future
By opening its doors, Chanel is not just revealing the intricacies of its craftsmanship; it’s reinforcing the value behind its luxury pricing. As the fashion landscape shifts, the blend of tradition, innovation, and transparency will define the future of high-end leather goods. Chanel’s timeless handbags remain a testament to the artistry and dedication that elevate them beyond mere accessories into the realm of iconic investment pieces.