Luxury Brand Price Increase... Dior Lady Medium Bag Jumps to 8 Million Won

Christian Dior's Lady Dior Medium Bag.

[Asia Economy Reporter Jeon Jinyoung] Luxury brands have initiated successive price increases.

According to the industry on the 26th, French luxury brand Christian Dior will raise prices on major products in early next month. The increase is about 5%. Dior had previously raised prices in January. For example, the Dior Lady Bag Medium is expected to increase from the current 7.6 million KRW to around 7.98 million KRW after the price hike.

Chanel is also caught up in price hike rumors. According to the industry, Chanel is expected to increase prices of popular handbags by 10% next month. Chanel has already raised prices three times this year. Philippe Blondiaux, Chanel's Chief Financial Officer (CFO), stated to foreign media last month, "There is a possibility of raising product prices next month to respond to inflation caused by the weak euro."

Luxury brands continue to implement price increases citing changes in pricing policies and exchange rate fluctuations. However, luxury purchases continue to rise due to the revenge buying sentiment following COVID-19, allowing the luxury industry to enjoy a boom. The "EruSha" (Herm?s, Louis Vuitton, Chanel), considered the three major luxury brands, recorded a record high domestic sales of 3.2 trillion KRW last year. Last year, Herm?s (527.5 billion KRW), Louis Vuitton (1.4681 trillion KRW), and Chanel (1.2238 trillion KRW) all achieved double-digit growth compared to the previous year.

Other luxury brands also performed well. Kering Group, which owns Gucci, posted an operating profit of 5 billion euros (6.78 trillion KRW) last year, a 60% increase from the previous year. Louis Vuitton Mo?t Hennessy (LVMH), which owns Louis Vuitton, Dior, and Celine, recorded sales of 64.2 billion euros (86.4363 trillion KRW) last year, up 44% from the previous year.