Chanel to Raise Prices Tomorrow... Dior Also to Increase as Much as Chanel

Chanel to Raise Prices by 10% on the 6th
Dior Also to Increase Prices on the 5th... Lady Bag to Reach 7 to 8 Million Won Range

Lady Dior Medium Bag.

[Asia Economy Reporter Jeon Jinyoung] Overseas luxury brands have initiated consecutive price increases.

According to the industry on the 5th, the French luxury brand Chanel is scheduled to raise prices on the 6th. The expected increase is about 10%. Based on this increase, the current Coco Handle Small, priced in the 6.5 million KRW range, is expected to jump to the 7 million KRW range.

Chanel had previously raised prices on handbags and jewelry in January and March of this year, and also increased prices four times last year. Regarding this, Philippe Blondiaux, Chanel's Chief Financial Officer (CFO), hinted at a price increase last month to overseas media, stating, "We may raise product prices next month to respond to inflation caused by the weak euro."

The French luxury brand Dior raised prices by about 10% on five handbag lines including the Lady Bag and wallets on the same day. This is six months after the price increase in January. The Lady Bag mini size rose from 6.4 million KRW to 7 million KRW, and the medium size jumped from 7 million KRW to 8.1 million KRW.

Luxury brands continue to implement price increases citing changes in pricing policies and exchange rate fluctuations. However, luxury purchases continue to rise due to revenge spending following COVID-19, and the luxury industry is enjoying a boom. The "EruSha" (Herm?s, Louis Vuitton, Chanel), considered the three major luxury brands, recorded the highest-ever domestic sales last year, reaching about 3.2 trillion KRW. Last year, sales of Herm?s (527.5 billion KRW), Louis Vuitton (1.4681 trillion KRW), and Chanel (1.2238 trillion KRW) all grew by double digits compared to the previous year.