[Report] Should I Line Up After Arriving in Seoul at Dawn?... 3rd Day of Chanel Chaos and Department Store COVID Fear

Long Queues from 5 AM at Lotte Department Store Main Branch and Major Department Stores Nationwide
Chanel Price Increase Starts Tomorrow... Today Is Practically the Last Chance to Buy
"Shatech, Worth Waiting 3 Hours"... Department Store Industry Anxious About COVID-19 Prevention

Around 6:30 a.m. on the 13th, customers lined up in front of the Lotte Department Store Main Branch (Myeongdong Branch) to purchase Chanel. As Chanel prices will increase on the 14th, the waiting line is expected to grow longer over time. Photo by Cha Min-young blooming@

[Asia Economy Reporter Lee Seon-ae] Around 6:30 a.m. on the 13th at Lotte Department Store Main Branch (Myeongdong Branch) in Seoul. Although there were still four hours left before the department store opened, a long line of customers waiting to enter as soon as the doors opened caught attention. They had gathered after hearing the news of a price increase for the luxury brand Chanel. At this time, there were roughly 30 people in line. The line is expected to grow longer as time passes. Since prices will rise starting from the 14th, this is the last chance to purchase before the price hike. Accordingly, at department stores nationwide where Chanel is located, a spectacular scene of an 'Open run'?customers rushing to the store as soon as the shutters go up?is expected to unfold.

Choi, a woman in her 20s met at Lotte Department Store Main Branch, said, "The price increase rate for the model I wanted seems to be over 25%, so I took a day off, woke up at 5 a.m., and took a taxi here," adding, "Actually, today is the last chance, so I was anxious, but I feel relieved because I think I can get a waiting number around 20."

Chanel Korea has remained silent about the confirmed price increase on the 14th, but among consumers, it has spread as a given fact, and the open run started on the 11th. On the 11th (local time), prices were raised by 7-17% in Europe, and from the 10th, price information was removed from Chanel Korea’s website.

As a result, from 6 a.m., long waiting lines formed at department stores nationwide where Chanel stores are located. In front of Shinsegae Department Store Main Branch (Myeongdong Branch), 40 customers were counted waiting as of 6:15 a.m. About 30 people were waiting in front of Hyundai Department Store Daegu Branch. More than 20 people were lined up in front of Lotte Department Store Jamsil Branch. Customer Lee, met at Jamsil Branch, said, "The waiting time is at least 1 hour 30 minutes and can exceed 3 hours, but I can wait," emphasizing, "The term 'Sha-tech' (Chanel + investment) is not without reason, and waiting is definitely worth it."

Chanel bag

On luxury communities, information sharing is active regarding 'which product lines and price increase rates are involved,' 'how long the waiting lines are at each store,' and 'which bags have remaining stock.' In regional department stores, there are even laughable situations where customers travel to Seoul due to lack of stock. Actual success stories of customers traveling to Seoul and barely securing products are posted on the community. At 7 a.m. that day, a post said, "My husband drove, we left at 3:30 a.m., arrived in front of Busan Centum City at 6 a.m., and received waiting number 40."

The problem is that with the spread of fear of COVID-19 infections originating from Itaewon clubs, the influx of crowds may breach department store quarantine measures. On the 11th and 12th, at various major department store Chanel stores, accidents occurred where people rushed in as soon as the doors opened, causing crowding and falls. There were also incidents where customers who received waiting numbers and hurried to their turn collided and fell.

Department stores are placing staff at the luxury hall entrances to check visitors’ temperatures and encourage mask-wearing, doing their best to enforce quarantine. However, many customers wear masks upon entry but lower them inside the store and closely converse with companions.

A department store official said, "It is true that there are many concerns because social distancing within the department store is not being observed due to the Chanel-induced open run," adding, "Currently, three department stores have been breached due to the Itaewon club incident, and there is worry that more will follow."

Especially, Lotte Department Store Main Branch cannot help but be more sensitive about quarantine. After confirming that a luxury store employee tested positive for COVID-19, Lotte Department Store Main Branch closed the store on the morning of the 9th. After checking the infected person’s movements and infection routes, an announcement was made around 5:30 p.m., and the entire main branch closed early to conduct disinfection. The employee had close contact with someone who visited an Itaewon club, underwent COVID-19 testing, and was confirmed positive early in the morning. Hyundai Department Store Jungdong Branch also closed early at 7:30 p.m. on the 10th and disinfected the store after one employee who visited an Itaewon club tested positive that afternoon. The Chungcheong Branch also suspended operations for a day on the 9th after an employee who visited an Itaewon club tested positive.

Accordingly, at a time when daily quarantine is emphasized, concerns inevitably arise about such consumption behavior among luxury buyers. Professor Choi Won-seok of the Department of Infectious Diseases at Korea University Anam Hospital emphasized, "Since Itaewon clubs and department stores are mainly frequented by young and trend-sensitive groups, there may be asymptomatic carriers, so extra caution is needed."

Within the industry, there are also critical views toward Chanel, which is making substantial profits in the Korean market. Chanel repeatedly raises prices several times a year like an annual event, generating huge profits, but does not disclose sales, operating profit, net income, or dividends. This is because these corporations registered as limited companies have no audit obligations. An industry insider said, "Since they are generating sales in Korea, they should transparently disclose financial information such as sales, profits, and dividends," adding, "Next year, with the introduction of the new external audit law, foreign limited companies will also have to submit audit reports, but Chanel is reportedly switching to a limited liability company to avoid this, which is problematic."