Editor’s Note
This article highlights the recent wave of price increases across the luxury jewelry sector, with major houses like Cartier, Tiffany, and Boucheron leading the trend. It follows similar adjustments in other luxury categories last month, signaling a broader pattern of price repositioning within the high-end market.
Luxury jewelry brands have raised their prices this month, starting with Cartier (on the 4th), followed by Tiffany (5th) and Boucheron (6th). Last month, luxury brands increased prices for bags and clothing, and this month, most luxury jewelry brands in department stores have raised prices every other day.
Some brands have announced price increases for this week. Italian luxury jewelry brand Damiani plans to raise product prices by an average of 9% on the 10th, while French luxury jewelry brand Fred is expected to increase prices by up to 10% on the 17th. French luxury brand Chanel, which raised prices for some bag products in January, is also understood to be planning to increase jewelry prices.
With news of jewelry price hikes spreading, some brands have seen scenes reminiscent of the ‘open runs’ witnessed during COVID-19. This indicates consumers’ growing preference for jewelry brands, which are considered more practical and versatile than bags. The demand from engaged couples purchasing wedding gifts ahead of the wedding season starting in May is also believed to be a factor.
Long lines formed in front of Cartier stores until the day before its price increase on the 5th. News of a 5-6% price hike across all items led to a surge in consumers rushing to buy. Online communities were flooded with real-time updates sharing store queue numbers, store entry closures, and product inventory status. One consumer lamented that due to insufficient store inventory, they had to purchase items costing millions to tens of millions of won without even being able to try on the desired size.
Luxury brands cite rising exchange rates and raw material costs as reasons for the price increases. They point to the rise in the won-dollar exchange rate due to factors like the year-end state of emergency, increased labor and logistics costs, and higher prices for all raw materials including gold and leather. According to the New York Mercantile Exchange, gold prices have surged by about 44% over the past year.
The problem is that luxury brands are raising prices every 4-6 months. Jewelry price hikes are expected to add further burden to engaged couples preparing for marriage. While luxury brands used to raise prices once a year, recently they have significantly increased prices ahead of the peak wedding gift purchasing period in February-March.
For example, Cartier’s popular Love ring (small) for wedding bands increased from 1.7 million won to 1.9 million won. 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.
Watch brands are predicted to announce price increases next month. IWC plans to raise prices again just eight months after its last increase in July last year, with an average increase of around 8% across all products. Watch and jewelry brand Chopard is also known to be raising prices within this month or next. Last year, Chanel and watch brands Breguet and Blancpain raised prices in March, Piaget and Van Cleef & Arpels in May, and Omega in July.