【South Korea】”Chanel is Cheapest Today”… Why the ‘Open Run’ Even as Luxury Prices Rise?

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Editor’s Note

Despite a broader economic downturn, Chanel has proceeded with significant price increases in South Korea, pushing several of its iconic handbags past key price thresholds. This move highlights the brand’s strategy of maintaining exclusivity and value perception, even as consumer spending contracts.

주얼리 브랜드 반클리프아펠은 지난 8일 5천만원 이상 제품 가격을 약 6% 인상했다. 반클리프아펠 홈페이지 캡처
Chanel Bags Surpass 20 Million Won… Price Hikes Continue Next Month

Despite consumer spending contraction due to economic recession, luxury brand Chanel has raised the prices of bags and shoes sold in South Korea.
The price of the Classic Maxi handbag increased by 7.5% from 18.92 million won to 20.33 million won, surpassing ’20 million won per bag’.
The Classic 11.12 bag rose 7.4% from 16.66 million to 17.9 million won, and the Boy Chanel Small Flap Bag also exceeded 10 million won.
The Chanel 19 bag also increased from 10.51 million to 11.3 million won. Chanel flat shoes also rose by nearly 220,000 won from 1.457 million to 1.676 million won.
Previously, Chanel also raised prices of some products sold domestically in January and June last year, increasing consumer dissatisfaction.

“I bought a Chanel bag last week, and seeing the increased price is staggering,” said one member of a luxury goods cafe. “The saying ‘today is really the cheapest’ is true.”
Another member said, “It seems I can’t afford it anymore,” adding, “Watches or jewelry might be better,” and “It brings tears of blood,” stating, “The increase rate is too high.”
Major Luxury Brands Follow Suit with Price Hikes

Besides Chanel, other major luxury brands are also raising prices one after another.
Hermès recently increased domestic product prices, raising the popular bag model ‘Picotin’ by 5.4% from 5.17 million to 5.45 million won.

샤넬 클래식 맥시 핸드백 가격은 기존 1892만원에서 2033만원으로 7.5% 인상돼 '가방 1개에 2천만원'을 넘어섰다. 샤넬 홈페이지 캡처

Delvaux also plans to raise prices by 3-5% on the 19th.
Jewelry brand Van Cleef & Arpels raised prices of products over 50 million won by about 6% on the 8th. Tiffany & Co. has also announced domestic price increases next month. Tiffany & Co. is implementing an additional increase just three months after the last hike in November last year.
Italian high-jewelry brand Buccellati also plans to raise prices by up to 10% on the 27th.
IWC plans to raise prices by 5% on the 12th of next month, and Chaumet, Cartier, Fred, etc., are also known to raise prices soon.

Strategic Price Hikes for Scarcity and Brand Polarization

While the luxury industry cites high exchange rates and rising gold prices as surface reasons, analysis suggests they are strategically raising prices for scarcity.
However, demand for luxury goods is not decreasing despite price hikes. Instead, consumers are making store reservations or participating in ‘open runs’ to secure products before the increase.
Stores of luxury brands with scheduled price increases are even more crowded with consumers.

“For brands like Chanel, Hermès, and Cartier, the ‘brand halo’ adds to price increases, sometimes boosting sales,” analyzed luxury expert and author Lee Yoon-jung, former editor-in-chief of ‘Noblesse’ and author of ‘Unveil – The Secret of the Luxury Goods We Love’. “A ‘brand polarization phenomenon’ occurs where top-class brands see steady or rising sales despite price hikes, while other brands experience sluggish sales.”
“Core customer groups are relatively insensitive to price increases, while entry-level consumers tend to postpone purchases, move to secondhand/resale markets, or switch to alternative brands,” said Professor Song Su-jin of Korea University’s Global Business School, a consumer behavior scholar. “Simultaneously, as the overall price range of luxury goods rises, the psychology of ‘even if buying one, choose the top brand’ is strengthening. Accordingly, some consumers are expected to shift towards the highest-tier luxury brands.”

This explains that luxury consumption is increasingly moving away from a cost-benefit issue towards consumption that chooses identity, symbolism, and scarce experiences.

까르띠에 등도 조만간 가격 인상에 나설 것으로 알려졌다. 까르띠에 홈페이지 캡처
A distribution industry insider also predicted, “Luxury goods have strong purposeful purchases, so while basic self-consumption exists, demands like gifts and wedding presents continue steadily. Therefore, even if prices rise, the impact on sales reduction is expected to be minimal.”
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⏰ Published on: January 15, 2026