"Targeting Post-COVID Revenge Spending"... Dior to Raise Prices Following Chanel

[Asia Economy Reporter Yujin Cho] French luxury brand Christian Dior will raise prices starting from the 2nd. Prices of major products, including the popular Lady Dior bag, will increase by up to 12%.

According to the fashion industry, Dior has decided to raise prices of major products such as bags by 10-12% after 9 months. As a result, prices of steady-seller products like the lambskin Lady Dior bag are expected to increase by approximately 400,000 to 600,000 KRW.

Dior had previously raised prices of some products by about 10% in October last year. This price increase follows the policy of the French fashion group Louis Vuitton Mo?t Hennessy (LVMH) headquarters and will apply to both regular stores and duty-free shops.

Earlier in May, Chanel also raised prices of major products by nearly 20%, and popular luxury brands such as Louis Vuitton, Gucci, Prada, and Tiffany & Co. consecutively increased prices in the first half of this year. On the 1st, Bulgari, known as one of the three major luxury jewelry brands, raised prices by 10% on products including the popular "B.zero1" line favored by engaged couples. Bulgari had already raised prices on some products in April.

Considering the recent price increases by Dior and Bulgari, the industry expects that Louis Vuitton, another luxury brand under the LVMH group, is highly likely to raise prices soon. There are also forecasts that Herm?s will join the price hike within this month.

Despite the economic downturn caused by the novel coronavirus disease (COVID-19), luxury brands have simultaneously raised prices targeting revenge consumption sentiment. The analysis is that as COVID-19, which began in January and prolonged, somewhat eases, the pent-up consumer demand is expected to explode all at once, prompting the price increases.

An industry insider said, "Although cost increases due to COVID-19 and exchange rate fluctuations are cited as reasons for the price hikes, frequent price increases largely reflect targeting revenge consumption sentiment. After confirming that demand is not decreasing but rather increasing due to phenomena like Chanel's 'open run,' other brands are also joining the price hike trend one after another."

Sogong-dong Lotte Duty Free Chanel Store

This content was produced with the assistance of AI translation services.