Editor’s Note
This article discusses Pomellato’s upcoming price increase in South Korea, reflecting broader trends in the luxury sector amid rising gold prices.
As gold prices continue to hit record highs daily, the atmosphere for price increases by luxury jewelry and watch brands is also heating up.
According to the luxury industry on the 18th, Italian fine jewelry brand ‘Pomellato’ plans to raise the prices of products sold in South Korea starting November 24. All products are expected to see an increase, with an average hike of 5%.
The industry views that as gold prices continue their steep climb recently, coupled with the high-demand autumn wedding season, prices of major jewelry brand products are also being pushed up.
In fact, according to the Korea Exchange (KRX), the international gold price on the 15th was 191,470 won per gram. On the same day, the domestic KRX gold market recorded 227,000 won per gram, renewing the record for the largest-ever price gap between domestic and international gold prices at 20.5%.
There is analysis that as demand flocks to gold, a safe-haven asset amid economic uncertainty, luxury jewelry brands may implement ‘Nth price increases’ in the domestic market.
Previously, luxury watch and jewelry brand Cartier raised prices for some jewelry products sold in Korea by about 2-4% on the 10th of last month.
Cartier’s price increase is also its third this year, having raised prices for jewelry and watches sold in Korea in February and May.
Dior raised the prices of products sold in Korea by an average of 3% on the 24th of last month, focusing on some bag, jewelry, and clothing items. While Dior’s fashion product price increase is the first in about two years, its jewelry prices were also raised in January and July of this year.
Brands announcing impending price increases are also following one after another.
Luxury watch brand Omega will raise product prices starting from the 1st of next month. Mid-to-low-priced watch brands under the Swatch Group, Mido, Tissot, and Hamilton, will also raise product prices by an average of 5-7% on the same day.
Italian luxury jewelry and watch brand Bulgari plans to raise product prices on the 10th of next month. This will be Bulgari’s third price increase this year. Bulgari previously raised prices for watch and jewelry products in April and June, respectively.
Tiffany & Co., the luxury jewelry brand under the LVMH group, is also reviewing price increases for key products next month. Tiffany has raised prices for key products in Korea twice this year, in February and June.
Already this year, leading Swiss luxury watch brand Rolex has led the trend of increases by raising prices for products sold in Korea on July 1st, following the first increase on New Year’s Day, January 1st.
With the autumn wedding season approaching and the year-end peak season ahead, attention is turning to whether price increases will extend to other categories like luxury bags from overseas brands, the so-called ‘HLC’ (Hermès, Louis Vuitton, Chanel), following watches and jewelry.
Meanwhile, as luxury product prices continue their upward trend in the Korean market, attention is also growing for the pre-owned luxury market, particularly for items in ‘mint condition’ (pre-owned luxury goods in near-new condition).
Especially recently, among the younger MZ generation, a trend of ‘value consumption’ is becoming prominent, where they consider sustainability, seek to reduce economic burden, and acquire scarce pre-owned luxury items at reasonable prices.
For example, Gangnam Cactus Department Store, Asia’s largest mint-condition specialty store, has secured a 12-story standalone large building in Samsung-dong, Gangnam-gu, Seoul, housing over 100 luxury brands. It has gained word-of-mouth popularity even from overseas, attracting customers.
Large offline shopping centers have the advantage of allowing ‘experience shopping’ of various brands in one space, where customers can compare and check products directly on-site.
Professional appraisers are on-site to directly appraise luxury items and provide consultation, enhancing reliability. Furthermore, by offering differentiated services like five-star hotel-grade interiors, free valet parking, beverages, and department store VIP-level conveniences, they have increased customer satisfaction.
