Japan, Luxury Shoppers Flock Amid Yen Weakness
Some Resell Luxury Goods
As the value of the Japanese yen has fallen to its lowest level in 34 years, overseas shoppers are flocking to Japan's luxury goods market. On the 17th (local time), Bloomberg reported that despite the weak yen, luxury brands have not adjusted their prices within Japan, prompting foreign shoppers to visit the country.
Some Resell Luxury Goods Due to Japan's Affordable Prices
For example, the Tag Heuer Carrera Chronograph watch can be purchased in Japan for 785,000 yen (about 7 million KRW) after tax-free discounts. However, the same product sells for $6,450 (about 8.86 million KRW) in New York, showing a difference of more than $1,350 (about 1.85 million KRW) compared to Japan. Additionally, the Chanel Classic Black Lambskin bag, priced at $11,700 (about 16.08 million KRW) in the U.S., can be bought in Japan for $10,277 (about 14.12 million KRW). Furthermore, Christian Dior's J'adore slingback pumps cost $1,050 (about 1.44 million KRW) in the U.S., but are available for $860 (about 830,000 KRW) in Japan.
The media noted that because high-end luxury goods can be purchased relatively cheaply, more and more overseas luxury shoppers are heading to Japan, and some customers are profiting by reselling the luxury items they purchase.
Deborah Aitken, a global luxury senior equity analyst, said, "Luxury manufacturers may adjust some prices through new product launches and limited collection releases, but savvy consumers can take advantage of discounts in specific markets created by exchange rate volatility."
Luxury Price Discounts Unlikely to Last Long
However, there are also opinions that the low-price phenomenon for luxury goods in Japan will not continue for long. Milton Pedraza, CEO of the New York-based consulting firm Luxury Institute, predicted that price discounts would not last because luxury manufacturers generally adjust product prices globally to prevent arbitrage. He said, "Luxury brands have already implemented significant price increases in 2022 and 2023, and except for some popular brands like Herm?s and Chanel, the supply is limited, so caution is needed."
Meanwhile, the number of foreign visitors to Japan has increased significantly due to the weak yen. According to statistics on foreign visitors to Japan in March released by the Japan National Tourism Organization (JNTO) on the 17th, a total of 3,081,600 foreigners visited Japan last month. This is the first time the monthly number has exceeded 3 million, setting a record high. The previous monthly record was 2,991,200 in July 2019. Among all foreign visitors last month, South Korea accounted for the largest number with 663,100 visitors.
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