People wait in line to enter a Chanel store at Lotte Department Store in Seoul on June 29, 2021, ahead of the luxury brand’s rumored price increase of more than 10 percent on July 1. (Yonhap)
SEOUL, July 2 (Korea Bizwire) — Demand for luxury goods continue to rise despite price hikes and the COVID-19 pandemic.
Chanel, a high-end fashion house, has already raised prices in South Korea twice this year.
The French luxury brand raised the price of the Classic Flap Bag Medium from 8.64 million won (US$7,600) to 9.71 million won, and the price of the Classic Flap Bag Large from 9.42 million won to 10.49 million won on Thursday.
Prices of other products, including Boy Chanel, also rose by a similar rate.
Despite the price increases, customers are flocking to Chanel boutiques at department stores throughout the country, lining up ahead of opening hours.
While some customers complain about a constant rise in prices, the popularity of luxury goods continues to grow.
Between May 1 and June 29, sales of luxury goods at Lotte Department Store jumped by 37 percent compared to last year. Sales of luxury goods at Hyundai and Shinsegae Department Stores rose by 54.1 percent and 38.8 percent, respectively.
“Prices increases for already expensive products give off the impression of rarity and something that only a few can afford, which eventually boosts demand,” said Lee Eun-hee, a consumer studies professor at Inha University.
“Customers are willing to spend more to buy them.”
“Ownership of luxury goods is seen as a competition among many to demonstrate the ability of an individual, a means to justify discrimination among people,” Lee warned.
H. M. Kang (hmkang@koreabizwire.com)
