Rolex, Hermes Price Hikes in January Followed by Fendi, Bulgari, Tiffany & Co., Breguet Price Increases in February
The prices of luxury brands are continuing to rise in the new year. Following this month, further price increases for flagship products of global luxury fashion and jewelry brands are expected next month.
According to the distribution industry on the 30th, the Italian luxury fashion brand Fendi will raise prices next month on representative bags such as the Peekaboo bag and some clothing items. Fendi, part of the Louis Vuitton Mo?t Hennessy (LVMH) group, plans to implement another price increase on key products next month, following a roughly 6% price hike on all products last October. At that time, the flagship product Peekaboo ICU Small was raised from 6 million KRW to 6.36 million KRW.
Luxury jewelry brands such as Bulgari, Tiffany & Co., and Boucheron are also following suit with price increases. Bulgari, which has announced a price increase effective from the 1st of next month, is seeing a rush of customers purchasing products just before the price hike. Major products such as the 'Serpenti' Viper Ring, 'B.Zero1' Ring, and 'Divas' Dream' Necklace will see price increases of 4-7%.Tiffany & Co. also plans to adjust prices for some white gold jewelry products next month. Boucheron has plans to raise prices in early February as well. The Swiss luxury watch brand Breguet will also uniformly increase prices on all products starting from the 1st of next month. The price of its flagship product, the 'Reine de Naples Collection,' currently ranges from approximately 48 million to 50 million KRW.
Earlier this month, major luxury brands such as Rolex and Herm?s have already implemented price increases. Rolex raised prices by 2-6% on popular models like the 'Submariner' and 'Datejust' on the 2nd. Jaeger-LeCoultre saw price increases of up to 24% on flagship products. Herm?s raised prices on bags, clothing, and other products by up to 15% on the 4th. The Belgian luxury brand Delvaux also increased prices on key products by 15%. Chopard, famous for wedding watches and rings, raised prices on all watches and jewelry by around 8% on the 16th.
Major luxury brands have been raising prices multiple times a year, citing increases in raw material and labor costs. Last year, most luxury brands including Louis Vuitton and Dior raised their prices. Chanel raised prices four times last year alone.
The industry expects the luxury market to continue growing despite concerns over an economic downturn this year, as consumption polarization becomes more pronounced. However, with the slowdown in asset price increases such as real estate, which had fueled luxury consumption domestically and internationally, and the ongoing 'bold price hikes' by luxury brands, growth rates are expected to decline. Bain & Company forecasts that the global luxury market will grow by 3-8% this year, significantly below last year's estimated growth rate (22%).
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