Editor’s Note
As luxury brands implement another round of price increases ahead of the seasonal gift-giving peak, citing factors from tariffs to inflation, the debate intensifies over the balance between maintaining brand value and consumer perception of aggressive pricing strategies.
Ahead of the peak season, including Chuseok and the autumn wedding season, when gift demand surges, the luxury industry is embarking on successive price increases. Despite numerous brands raising prices multiple times since the first half of the year, additional hikes are being implemented citing reasons such as the US Trump administration’s tariff policies and global inflation, reigniting controversy over ‘audacious business practices’.
According to industry sources on the 2nd, Jaeger-LeCoultre, a Swiss luxury watch brand under the Richemont Group, plans to raise prices of products sold in South Korea by approximately 5-7% on the 15th. The specific increase rates per product have not yet been finalized.
Breguet, a high-end luxury watch brand under the Swatch Group, also raised prices of all products sold in South Korea by about 5% last June.
These increases appear to be influenced by the recent US government’s imposition of a 39% reciprocal tariff on Switzerland, a major exporter of luxury watches.
As Swiss brand prices rise, luxury brands from other countries are also following with relay increases.
French luxury jewelry brand Boucheron raised prices of products sold in South Korea by about 6% last July. Italian high-end jewelry brand DAMIANI also raised prices of products sold domestically by about 10% in the same month.
Price increase movements for luxury bag products are also evident.
Louis Vuitton raised its duty-free store selling prices by an average of 2% last month. The ‘Carryall PM’ saw its duty-free price rise to the 3.8 million won range, leaving only about an 8% difference from domestic department store prices.
Given the duty-free price increase, it seems inevitable that sales prices at department stores and other outlets will also rise soon.
This is already the third price increase by Louis Vuitton in South Korea this year. It raised prices of representative bag products by about 3% each in January and April.
Burberry raised prices by 1-5% across all categories including fashion, miscellaneous goods, and accessories last month.
Prada also raised prices of products sold in South Korea by about 6% in July, following an increase in February. The ‘Medium Re-Nylon Backpack’ with a pouch rose 6.3% from 3.15 million won to 3.35 million won.
There are observations that Chanel, which successively raised prices of fashion and miscellaneous goods products like bags in South Korea earlier this year and last June, is also imminent for an additional increase soon.
Chanel raised prices of some bags, including its classic line, by about 4-5% in the US starting last month.
The ‘Chanel Classic Small’ rose 4.8% from $10,400 (approx. 14.37 million won) to $10,900 (approx. 15.06 million won), and the ‘Chanel Classic 11.12’ rose 4.6% from $10,800 (approx. 15.01 million won) to $11,300 (approx. 15.70 million won).
The reason luxury brands continue to raise prices despite criticism of ‘audacious business’ is that consumer demand does not cease due to the perception that ‘luxury goods are cheapest today.’
Especially in the South Korean market, where the tendency is for more expensive items to sell better, there is analysis that for global brands generating trillions of won in annual sales domestically, there is no reason not to raise prices.
