Following Louis Vuitton, Chanel Also... Sudden Price Hike During Vacation Season

Price Increase for Chanel Jewelry in Japan and Others
Price Hike on the 1st of Next Month, Will 'J12' Reach 9 Million Won?

Chanel will suddenly raise the prices of fine jewelry and watch products starting from the 1st of next month. As major luxury brands such as Herm?s, Louis Vuitton, and Rolex frequently increase prices in multiple rounds, Chanel appears to be joining this trend.

According to the luxury industry on the 30th, this is the second time this year that Chanel has raised prices on jewelry products. Looking at the products individually, prices were first increased for jewelry in January, followed by beauty (perfume) in February, and bags and clothing in March, making this the fourth price hike announcement this year.

Although the exact rate of increase has not been determined, it is expected that the price hike will be up to around 5%, similar to earlier this year. Chanel has recently adjusted product prices worldwide. In Japan, considering the exchange rate situation, product prices reportedly increased by about 10%. Because of this, some luxury communities are saying, "Those who want to purchase Chanel jewelry or watches should definitely buy them within this month."

The first price increase for jewelry and watch products this year was on January 9th. Looking at the price increase status of major products at that time, the representative watch product J12 33mm was raised from 8.27 million KRW to 8.65 million KRW, an increase of about 4.6%. If the price increases by around 4% this time as well, the product price will approach 9 million KRW.

Chanel J12

The Coco Crush collection rings, symbolizing Chanel jewelry, increased from 4.3 million KRW to 4.41 million KRW for the small size at the beginning of this year, a 2.6% increase. Following a similar trend, if the price rises by about 3%, the Coco Crush small beige gold product will increase to the 4.5 million KRW range. The Coco Necklace (necklace) in beige gold with diamonds is priced at 8.95 million KRW, and if a similar rate of increase is applied this time, it is expected to be adjusted to around 9.2 million KRW. Recently, Chanel held its first external Coco Crush pop-up store in Seongsu-dong, Seoul, and there are rumors that product price increases may occur in the second half of the year after the pop-up store ends.

Chanel was the company that opened the door to multiple rounds of price increases ('N-round increases') annually in Korea. In 2022, when the luxury purchase boom occurred, Chanel raised prices four times in total?in January, March, August, and November. Although luxury consumption sharply contracted last year due to the economic downturn, Chanel showed confidence by implementing two price increases.

As a result, many companies have followed Chanel in implementing multiple rounds of price increases. Typically, jewelry and watch brands raised prices ahead of the wedding season (May) or vacation season, but now they are increasing prices according to all product timings. Luxury companies claim that price adjustments are inevitable due to rising raw material costs. However, some critics argue that despite the price hikes, domestic consumers continue to purchase products, suggesting that companies are boldly pushing sales to increase revenue.

Earlier this month, Louis Vuitton raised prices again after five months, focusing on bag products following a price increase in February. The NeoNoe BB increased from 2.58 million KRW at the end of last year to 2.74 million KRW in February, and with this latest increase, it has reached 2.9 million KRW. With two price hikes, the price has risen about 11% this year alone. Rolex raised prices twice this year, in January and June, citing the rise in gold prices. After increasing prices by about 8% in January, it raised prices again by about 5% last month. Herm?s joined the multiple rounds of price increases by raising prices on some shoe products such as the Royal Loafer and Oran in January, followed by a price increase on the Garden Party bag last month.