The 'open run' where customers lined up long before department store doors opened to buy products from the French luxury brand Chanel is expected to disappear.
According to the industry on the 31st, Chanel Korea abolished the 'pre-registration system' that operated before business hours at major domestic department stores on the 10th of this month.
The 'pre-registration system' was a system that gave waiting numbers to customers waiting in front of the store before the department store opened, granting them the right to purchase products in the order of their waiting numbers after opening. Since the implementation of this system, crowds have started to line up long before opening at major department stores to get early numbers.
The Chanel store at Lotte Department Store Main Branch AvenueL stated, "We have stopped the pre-registration operation conducted before business hours since the 10th," and added, "We will assist entry in the order of arrival at the Chanel store after the department store opens."
It is also known that the Chanel stores at Shinsegae Department Store Main Branch and Centum City Branch, as well as Galleria Department Store Luxury Hall, notified that "the operation of the pre-waiting area conducted before business hours will be discontinued from the 10th."
The 'pre-registration system' was introduced in 2020 as the demand for domestic luxury goods surged due to blocked air routes during COVID-19 and revenge buying psychology, which increased the inconvenience of customers lining up.
Chanel greatly benefited during the COVID-19 pandemic. Chanel Korea's operating profit, which was 110.9 billion KRW in 2019, soared annually to 149.1 billion KRW in 2020, 248.9 billion KRW in 2021, and 412.9 billion KRW in 2022. Operating profit nearly quadrupled in three years. Sales increased from 1.0639 trillion KRW in 2019 to 1.5913 trillion KRW last year.
As consumer demand surged like this, Chanel imposed restrictions such as limiting the number of products one person could purchase or implementing extreme measures like a waiting system based on the last digit of mobile phone numbers.
However, the atmosphere changed after the endemic phase. As overseas travel became active, the number of consumers purchasing luxury goods directly abroad increased, and with growing concerns about an economic downturn, experts speculate that Chanel abolished the pre-registration system.
Earlier, the Swiss luxury watch brand Rolex also introduced an online reservation system in early July to eliminate open runs. They implemented internet reservation methods nationwide in Korea and maintained on-site registration at some stores but made changes to reduce open runs.
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