Editor’s Note
Van Cleef & Arpels is implementing a significant price increase in South Korea, averaging 10%, effective April 25. This marks the brand’s second hike in just four months, a move that has been met with consumer criticism for its unexpected timing ahead of the usual annual adjustment.
French luxury jewelry brand Van Cleef & Arpels will raise prices of its products in South Korea by an average of 10% starting from the 25th. This follows a 3-4% price increase implemented in January of this year, marking another hike in just four months. This increase has been brought forward from the brand’s usual annual adjustment period around May, leading to consumer complaints about a “surprise price hike.”
According to industry sources on the 24th, Van Cleef & Arpels has typically adjusted prices globally around May each year. This year, due to exchange rate fluctuations, the price increase in Korea is expected to be larger than in overseas markets. While other major markets like the US and Europe will see increases of around 5%, domestic products in Korea will see an average 10% hike. The increase applies to all product lines, but the hike for the popular entry-level ‘Vintage Alhambra Mother-of-Pearl’ collection is expected to be particularly notable.
Nicolas Bos, CEO of Richemont, Van Cleef & Arpels’ parent company, stated at the end of last year:
However, the brand already raised prices by 3-4% in some markets, including Korea, in January, citing exchange rates. For Korea, this means two price increases in less than half a year. The implementation of the price hike 1-2 weeks earlier than usual, coupled with the lack of separate prior notice in January, has fueled consumer complaints about a “surprise increase.”
This month, not only Van Cleef & Arpels but also Italian jewelry brand Pomellato, Swiss watch brands OMEGA and Bvlgari (watch division) have already raised prices. Cartier, another jewelry brand under the Richemont Group, is scheduled for its regular price increase next month. Longines, a luxury watch brand under the Swatch Group, will raise prices in June.
Luxury companies cite rising raw material costs and exchange rate fluctuations as reasons for price increases. However, there are observations that the frequency of price hikes in the Korean market is becoming increasingly shorter. Major luxury brands like Chanel, Louis Vuitton, and Hermès have also raised prices multiple times over the past year.
An industry official commented: