"Today Was the Cheapest, So We Spent Tens of Millions" Prospective Couple's Open Run 'Burning Up' [Luxury World]

Luxury Jewelry Brands Raise Prices This Month
Cartier, Tiffany, and Boucheron Lead the Way; Watch Brands to Follow
Rising Gold Prices and Exchange Rates Increase the Burden for Engaged Couples

"My fianc? was busy, so I went for an open run alone from 8 a.m., but I got number 30 in line."

"I broke through the open run and spent tens of millions of won, but I only came out holding a piece of paper. They say you have to wait three months, but this is still the cheapest time."

Since the beginning of the year, luxury brands have been continuously raising their prices. Luxury stores, citing the surge in exchange rates and raw material prices such as gold, have seen crowds of visitors lining up even before opening hours every day. This is because consumers are flocking to stores to purchase products before the luxury price hikes. However, some voices criticize luxury brands for using the price increase card in less than a year as a strategy to stimulate consumers' purchasing psychology.

Consumers are lining up to enter the department store. This is unrelated to the content of the above article.

According to the luxury industry on the 9th, French luxury jewelry brands such as Cartier (on the 4th), Tiffany (on the 5th), and Boucheron (on the 6th) raised product prices earlier this month. Last month, luxury brands raised prices on bags and clothing, and this month, most luxury jewelry brands in department stores have been raising prices every other day.

Some brands have also announced price hikes this week. Italian luxury jewelry brand Damiani plans to raise product prices by an average of 9% on the 10th, and French luxury jewelry brand Fred is expected to increase prices by up to about 10% on the 17th. French luxury brand Chanel, which raised prices on some bag products in January, is also expected to raise prices on jewelry products.

With the news of jewelry price increases, some brands have even recreated the open run scenes seen during COVID-19. This indicates that consumers' preference for jewelry brands, which are more practical and versatile than bags, has increased. It is also presumed that the demand for wedding gifts from couples preparing for the wedding season after May has been reflected.

.

Prior to the price increase date (the 5th), long lines formed in front of Cartier stores until the 4th. As news spread that prices for all items would increase by 5-6%, the number of consumers purchasing products surged. On internet communities, waiting numbers by store were shared, and real-time updates on store closures and product stock status were posted. One consumer lamented that due to insufficient product stock at the store, they had to purchase products worth from several million to tens of millions of won without being able to try on the desired product size.

Luxury brands cite exchange rates and raw material price increases as reasons for the price hikes. At the end of last year, the won-dollar exchange rate rose due to emergency measures and other reasons, labor and logistics costs increased, and the prices of all raw materials such as gold and leather became more expensive. According to the New York Mercantile Exchange, gold prices have surged about 44% over the past year.

Cartier store located on the 1st floor of Galleria Luxury Hall East.

The problem is that luxury brands are raising prices on a 4-6 month cycle. The price hikes by jewelry brands are expected to further burden couples preparing for marriage. In the past, luxury brands raised prices once a year, but recently, brands have significantly raised prices ahead of February and March, when wedding gift purchases increase.

In fact, Cartier's Love Ring (Small), popular as a wedding ring, increased from 1.7 million won to 1.9 million won, and the Love Ring (Small) with one diamond rose from 3.39 million won to 3.6 million won. The Trinity Ring increased by 130,000 won from 2.04 million won to 2.17 million won.

Next month, price hike news from watch brands is expected to continue. IWC plans to raise prices again eight months after the last increase in July last year. It is reported that prices will be raised by an average of around 8% across all items. Watch and jewelry brand Chopard is also expected to raise prices either this month or next month. In March last year, Chanel and watch brands Breguet and Blancpain raised prices, Piaget and Van Cleef & Arpels raised prices in May, and Omega raised prices in July.