Fred, 15 Days Ago Product Price Increase by 3-7%
Van Cleef, 5-10% Rise Possible This Week
Luxury Market Boom Coincides with Wedding Season
‘Fred’ and ‘Van Cleef & Arpels’ are joining the luxury brands that have raised their prices since the beginning of this year. The industry analyzes that the surge in demand for luxury jewelry ahead of the wedding season, along with the continued boom in the luxury market despite the global recession, has influenced this trend.
According to the industry on the 9th, Fred will increase the prices of all products by 3-7% starting on the 15th. Fred is a luxury jewelry brand representing France, alongside Chaumet, Van Cleef & Arpels, and Cartier. The wedding bands from the wedding collection ‘Par amour’ range from 1.9 million to 2.5 million KRW, and engagement rings can cost up to 20 million KRW depending on the product. With Fred’s price increase across all products, prices are expected to rise by up to 1.5 million KRW. Fred also implemented a price increase once last year.
Van Cleef & Arpels also plans to raise prices of all products by 5-10%, possibly as early as this week. The necklace prices in Van Cleef’s signature collection ‘Alhambra’ range from 2.1 to 2.3 million KRW for the Sweet version and 3.8 to 4.3 million KRW for the Magic version.
The ‘relay’ price increases among luxury jewelry brands began earlier this year. In January, French luxury brands Herm?s, Rolex, and Chanel Beauty simultaneously raised prices of major products by an average of 8%, and last month, French luxury brand Cartier increased prices of popular products by up to 15%. In the cases of Herm?s and Cartier, this marks a second price increase within less than a year following last year’s hike.
The background to these price increases lies in the ongoing boom in the luxury market despite the global recession. According to the Financial Supervisory Service’s electronic disclosure system, the combined sales of Herm?s Korea, Louis Vuitton Korea, and Chanel Korea last year totaled 3.9338 trillion KRW, a 22% increase compared to the previous year (3.2194 trillion KRW). Considering the high interest rates, high inflation, high exchange rates, and declining consumer indicators, the luxury market is thriving alone. The wedding season, which has officially begun, has also influenced the price hikes. Wedding bands and wedding rings from luxury jewelry brands, which are popular choices for wedding gifts among engaged couples, require waiting several months for stock despite the recent continuous price increases.
An industry insider said, "Even with price increases, there are still ‘open run’ lines in front of luxury stores," adding, "Since leading luxury brands have consecutively raised prices, it is highly likely that other brands will also join in the price hikes."
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