Main Bag Lines and Jewelry See Price Hikes
"Classic Large Flap Bag" Nears 18 Million Won
Luxury brand Chanel has once again raised domestic prices on some of its products, including bags and jewelry. This marks the third price increase by Chanel so far this year.
According to industry sources on June 2, Chanel Korea increased the price of the "Chanel Classic Large Flap Bag" from 16,780,000 won to 17,950,000 won, an increase of about 7% (1,170,000 won). The "Chanel Classic Large Flap Bag" first surpassed the 10 million won mark in July 2021, when its price rose from 9,420,000 won to 10,490,000 won. Since then, as luxury consumption surged during the COVID-19 pandemic, the price climbed even higher, and with this latest increase, it is now approaching 18 million won.
For the "Classic Medium," the price increased by 1,030,000 won (6.6%) from 15,570,000 won to 16,600,000 won, while the "Classic Small" rose by 6.9% from 14,970,000 won to 16,010,000 won. The "Chanel Classic Flap Bag," first released in 1983, is an iconic bag representing Chanel and is especially popular in Korea as a wedding gift or proposal present.
The "Chanel 22 Bag," known for being carried by Blackpink member Jennie, also saw price hikes. The small size increased by about 8.2% from 8,220,000 won to 8,890,000 won, and the medium size rose from 8,670,000 won to 9,380,000 won. In January, Chanel adjusted the prices of some products but did not raise prices for the Classic Bag or the 22 Bag at that time.
Prices of some jewelry products have also been raised. The Coco Crush Ring (18K) went up from 2,530,000 won to 2,730,000 won, an increase of about 7.9%.
This is already the third price increase by Chanel in Korea this year. A Chanel Korea representative stated, "We adjusted the prices of some products in stores today," and explained, "Price adjustments are based on the euro exchange rate in each country." The representative added, "The average adjustment rate for fashion and fine jewelry was set at 6% and 4.4%, respectively."
Chanel is not the only luxury brand to raise prices recently. Previously, Louis Vuitton raised some bag prices twice in January and again in April. Cartier increased prices for all products by 6% in February, and raised prices on jewelry and watches by about 6% again last month. Omega, a luxury watch brand, also raised prices for all products by an average of 3% starting in April. While luxury brands cite factors such as exchange rates and rising raw material costs as reasons for the increases, there is criticism that raising prices multiple times a year is excessive.
Meanwhile, Chanel posted sales of 1.85 trillion won in the Korean market last year, marking the highest figure since the Korean subsidiary's performance was first disclosed.
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