Coin Wallet Priced at 2.98 Million Won... Chanel's Another Sudden Price Hike

The Third This Year... 'Coco Handle' and Others Up 6~36%

On the 1st, Chanel's 'Chain Flap Coin Purse' price increased by 33.8% from the original 2.22 million KRW to 2.98 million KRW. The photo shows the Chain Flap Coin Purse. (Photo by Chanel Korea official website)

[Asia Economy Reporter Seungjin Lee] French luxury brand Chanel has implemented its third price increase this year. With Louis Vuitton also expected to raise prices, the lines in front of luxury stores are likely to continue.

According to the distribution industry on the 2nd, Chanel suddenly raised prices by 6-36% on some products, including its signature handbag, the ‘Coco Handle,’ the day before. Among the major products with increased prices, the medium size of the ‘Coco Handle’ rose 10.9% from 5.5 million KRW to 6.1 million KRW. The ‘Classic Cosmetic Case Chain Phone Holder’ jumped 36.1% from 2.087 million KRW to 2.84 million KRW. The ‘Chain Flap Coin Purse (photo)’ increased 33.8% from 2.226 million KRW to 2.98 million KRW.

This price hike by Chanel comes just two months after raising prices by 8-14% on some products in July. In February and January of this year, prices of some items were also raised by more than 5%. Regarding the price increase, Chanel stated, "We regularly adjust prices considering changes in production costs, raw materials, and exchange rate fluctuations."

As luxury brands repeatedly implement surprise price hikes several times a year, the stores have been crowded daily even amid the COVID-19 pandemic. Consumers visiting stores due to anxiety over unpredictable price increases and ‘resellers’ aiming for arbitrage profits keep coming. Prada raised prices five times this year, while Burberry and Celine have done so twice. Louis Vuitton, which has already raised prices five times, is also expected to increase prices around the Chuseok holiday.

With soaring luxury prices, some ‘resale’ markets continue to grow. Certain products from luxury watch brand Rolex are being traded at prices 5 million KRW higher than the market price.