Targeting Fall Weddings and Year-End Gift Demand... Luxury Jewelry to See Smaller Price Increases in the Second Half

Chaumet and Bulgari Expected to Raise Prices on the 1st Next Month
Despite Luxury Consumption Slowdown, 'Nth Price Increase' Also Underway

Luxury jewelry brands that have entered the domestic market have begun to raise product prices in earnest, targeting the fall wedding season and the year-end holiday gift demand.

The 'Bvlgari Studio Installation' popup held last March at 'The Crown' on the B1 floor of Avenue Lotte Jamsil branch. [Photo by Lotte Department Store]

According to the luxury industry on the 13th, the Italian luxury jewelry brand 'Bulgari' plans to increase prices starting next month on the 1st. It was initially expected that prices would rise after the Chuseok holiday, but news that prices will increase in Europe and Japan from October suggests that the domestic market will follow suit.

The industry expects Bulgari's price increase to maintain a similar level as before. Previously, in February and July of last year, the average price was raised by about 7% in two rounds. Additionally, in April this year, prices of some products such as Serpenti, Divas' Dream, and B.zero1 were increased by about 4-7%. As a result, the 'Serpenti Viper Necklace,' a popular necklace product among domestic consumers, rose by 300,000 KRW to 7.45 million KRW, and the 'Divas' Dream Necklace' increased from 3.05 million KRW to 3.23 million KRW. The B.zero1 1-band ring, often chosen by newlyweds as a wedding ring, also rose by 120,000 KRW to 2.52 million KRW.

This time, the price increase may focus on products that were not raised in April. Notably, among the B.zero1 lineup, which is popular with domestic consumers, the 'B.zero1 Necklace Mini' (2.99 million KRW), 'B.zero1 Bracelet' (2.99 million KRW), and 'B.zero1 Bracelet' (7.75 million KRW) saw no price changes this year.

On the 11th, the French luxury jewelry brand 'Chaumet,' known for the so-called 'Song Hye-kyo ring,' implemented a price increase. Although the increase varies by product, the average rise is around 8%. This is Chaumet's first price increase in about a year and a half since March last year. Compared to other luxury brands, the price increase cycle is relatively long, but due to high exchange rates and rising international gold prices, the brand decided to raise prices in the second half of the year.

Popup store of French royal jewelry brand Chaumet held at Galleria Department Store.
[Photo by Galleria]

Chaumet's popular products include wedding bands and items often sought for wedding gifts such as 'Be My Love,' 'Josephine + Triomphe Wedding Band Ring,' 'Liens Evidence,' and 'Joue de Liens.' With this increase, the price of the 'Be My Love Ring (without diamond)' rose from 1.49 million KRW to 1.52 million KRW, and the 'Be My Love White Gold Necklace' increased by about 7% from 4.64 million KRW to 5.01 million KRW. The 'Josephine (Platinum, Full Pav?),' favored as an engagement and wedding ring, rose by about 400,000 KRW from 4.89 million KRW to 5.28 million KRW, and the 'Joue de Liens Necklace' increased from 2.29 million KRW to 2.34 million KRW.

The French luxury brand Chanel also raised prices on jewelry and watch products again on the 1st of last month, following an increase in January this year. The price increase was about 4%. Accordingly, the price of the 'Coco Crush Ring' (Beige, Small) rose by 160,000 KRW from 4.41 million KRW to 4.57 million KRW. The Coco Crush Ring Mini product increased from 2.45 million KRW to 2.53 million KRW. The domestic fine jewelry company Golden Dew also raised product prices across the board from the 9th of last month for the first time in two years. The price of the Dueternals2 earrings increased by 33%, from 1.03 million KRW to the 1.37 million KRW range.

Luxury jewelry companies state that price increases are inevitable due to rising gold prices. The price of gold futures traded on the New York Mercantile Exchange has risen about 8% over the past three months. Due to the ongoing economic downturn, domestic luxury consumption is also declining. Based on sales from January to August this year, the growth rate of luxury product sales was in the 5% range compared to the same period last year, a decrease from 25% in 2022 and 35% in 2021. This may reflect an intention to defend sales by raising prices.

However, some view that certain companies raise prices multiple times to stimulate consumer purchasing psychology, separate from gold prices. In fact, as news of price increases from major luxury jewelry brands continues, some online communities have posted messages about monitoring other brands' trends and considering purchasing before prices rise. A luxury industry insider said, "When news of price increases spreads, consumers who had their eyes on those brands tend to buy before the prices go up. Although sales may temporarily decline after the increase, overall luxury demand does not decrease, allowing companies to boldly raise prices."