Editor’s Note
This article examines the widespread price increases implemented by luxury brands at the start of the year, exploring the stated reasons of rising costs and the strategic implications of maintaining exclusivity.
Luxury brands have launched simultaneous price increases from the very beginning of the new year. While citing reasons such as rising raw material costs and exchange rate fluctuations, there are also views from within and outside the industry questioning whether the essence is actually reinforcing scarcity through a high-price strategy.
According to industry sources on the 13th, comprehensive price increases by luxury brands are being implemented across all fields, including bags, jewelry, and watches.
The Swiss luxury watch brand Rolex adjusted its domestic sales prices starting from the first day of the new year.
As of the 1st, the ‘Submariner Oyster 41mm’ increased by 5.7% from 14.7 million won to 15.54 million won, and the ‘Submariner Date Oyster Steel/Yellow Gold 41mm’ rose by 7.4% from 27.11 million won to 29.21 million won.
Tudor, a brand under Rolex, also joined the price adjustment, with the ‘Black Bay 58 39mm Steel Bracelet’ model increasing by 9.6% to 6.48 million won.
The watch brand IWC, under the Richemont group, raised the prices of its domestic sales products by an average of 5-8% starting from the 12th of this month.
Watch brands Hublot and Tag Heuer, belonging to the LVMH group, also implemented price increases of 3-8% and an average of 6%, respectively, this month.
Jewelry prices are also joining the increase trend.
The French high jewelry brand Fred plans to adjust domestic sales prices upward in March, while Van Cleef & Arpels unexpectedly raised the prices of its high jewelry products on the 8th. Van Cleef & Arpels increased prices for key collection products like Flowerlace, Palmyre, and Snowflake by about 6%.
Tiffany & Co., the jewelry brand of the LVMH group, will also increase the prices of products sold domestically by 5-10% starting from the 26th of next month.
Products like bags and wallets have also joined the price hike lineup. Chanel increased the prices of bags, wallets, and other products on the 13th.
Hermès also raised prices for some items, including shoes, from the beginning of the new year. The Royal loafer increased by 3.2% from 1.9 million won to 1.96 million won, and the Hour loafer rose by 3.4% from 1.48 million won to 1.53 million won.
Delvaux, known as the ‘Hermès of Belgium,’ plans to increase the prices of major bag products like the Brillant and Tempête by about 3% starting from the 19th.
With major luxury brands raising prices from the start of the year, the prevailing observation is that the trend of ‘Nth round’ price increases will continue this year.
In fact, last year, many brands raised prices more than twice during the year.
Chanel increased prices twice in January and June of last year.
Fred raised product prices by about 5-10% at the end of February last year and had increased product prices by around 10% in 2024. Tiffany raised domestic product prices three times in total in February, June, and November of last year.
The official reasons brands present for the increases are rising raw material prices and increased manufacturing costs.
However, some in the industry analyze that repeated price hikes are closer to a strategic choice to enhance scarcity and premium image rather than being driven by cost burdens. The intention is to filter demand by raising price barriers and maintain brand status.