Editor’s Note
As global luxury brands, including Rolex, implement price hikes in markets like South Korea, this article examines the confluence of factors—from raw material and labor costs to currency fluctuations—driving the trend. The significant rise in gold prices is a key contributor, particularly affecting jewelry and watch segments.
In South Korea, at the beginning of the new year, global luxury brands have simultaneously implemented price increases due to factors such as rising raw material costs, labor expenses, and exchange rate fluctuations. The surge in gold prices, in particular, has significantly pushed up the prices of jewelry and luxury watches.
According to the distribution industry, the Swiss luxury watch brand Rolex revised its prices starting January 1st. The representative model “Submariner Oyster 41mm” increased from 14.7 million won to 15.54 million won (approximately a 5.7% increase), while the “Submariner Date Oyster×Yellow Gold 41mm” rose from 27.11 million won to 29.21 million won (approximately a 7.4% increase).
Tudor, a brand under the Rolex umbrella, also adjusted its prices. The “Black Bay 58 39mm Steel Bracelet Model” is now priced at 6.48 million won, marking a 9.6% increase.
Luxury fashion brands are also expected to proceed with price revisions one after another. Hermès plans to raise prices for its products in South Korea within this month, and some customers have reportedly already been notified. As the brand typically implements price increases in January, a similar move is anticipated this year.
Chanel also raised the prices of its bags in January last year, and a price hike is expected this year as well. Speculation is spreading that Louis Vuitton will also revise prices for some of its products.
It’s not just luxury brands. Top hotels in Seoul are also raising their buffet prices due to soaring raw material costs and increased labor expenses.
Lotte Hotel Seoul’s buffet “La Seine” revised its weekend dinner price from 198,000 won to 203,000 won starting January 1st, with the lunch price also adjusted to the same amount. The Westin Chosun Seoul’s “Aria” also increased its weekend dinner from 175,000 won to 182,000 won (approximately a 4% increase), and its weekday lunch from 150,000 won to 160,000 won (approximately a 6.6% increase).
“The Parkview,” operated by The Shilla Seoul, plans to revise its weekend dinner price from 198,000 won to 208,000 won starting March 1st.