SEOUL, Nov. 1 (Korea Bizwire) – Luxury fashion brand Chanel is raising prices by up to 30 percent in South Korea, despite criticism.
It’s the third time this year alone that the French fashion brand has raised prices in the South Korean market, with the cost of a wide range of products expected to rise, including the brand’s signature ‘CoCo Handle Bag with Lizard Handle’ which will increase from 4.76 million won to 6.15 million won starting next month.
Among the dozens of products that are subject to the price hike is Chanel’s medium-sized caviar bag, as its price will be raised from 5.98 million won to 6.28 million won going into November, while the jumbo size of the same bag will see its price bumped from 6.67 million won to 7 million won, both up nearly 5 percent.
The price of another popular item, Boy Chanel, in small and large sizes will also become more expensive, up 4.9 percent and 4.6 percent from the previous prices, respectively.
Back in May, Chanel raised prices of some of its products at duty-free shops by 4 percent on average, and in September the luxury brand once again introduced price hikes of up to 17 percent for products sold at department stores.
“Despite the exorbitant prices, Chanel’s handbags are particularly popular as wedding gifts among the upper class. The price increase might have been announced in time for the wedding season,” a source close to the retail industry said.
Chanel has faced criticism in the past from South Korean consumers, as the brand continues to raise prices without justification, giving the impression that South Korean consumers are being taken advantage of.
Chanel’s latest move comes on the heels of price hikes by another luxury brand, Gucci, which also raised prices for a wide range of items sold in the South Korean market earlier this month, including handbags, wallets, shoes and other leather products.
Gucci Korea said the price increases were decided on as part of the company’s global pricing policy, considering the growing price of materials and fluctuating foreign exchange rates.
Along with Chanel, and Gucci, Christian Dior and Hermes also raised prices for products including bags and scarves.