No Wonder People Line Up... Chanel Classic Bag Surpasses 10 Million Won

On the morning of the 28th at 8 a.m., customers lined up in front of the Lotte Department Store main branch in Jung-gu, Seoul, waiting for the store to open to purchase products from the French luxury brand Chanel before the price increase.

[Asia Economy Reporter Seungjin Lee] The rumored price hike of the French luxury brand Chanel has become a reality. On the 1st, Chanel raised the prices of popular products, including the Classic Flap Bag, by 8 to 14%. With product prices increasing by over 1 million KRW overnight, there are self-deprecating voices saying that those who purchased the products before the price hike through the so-called 'open run' (rushing to shop as soon as the department store opens) are ultimately the winners.

According to Chanel's official website on the 4th, Chanel raised prices of some products such as handbags by 8 to 14%. The prices of handbags, which are popular domestically as wedding gifts, were increased. Chanel's representative handbag, the Classic Small, rose from 7.85 million KRW to 8.93 million KRW, and the Classic Medium size, the best-selling size in Korea, increased from 8.64 million KRW to 9.71 million KRW, marking increases of 13.8% and 12.4%, respectively.

In particular, the Classic Large size rose from 9.42 million KRW to 10.49 million KRW, an 11.4% increase. This is the second product to surpass 10 million KRW after the Classic Maxi broke the 10 million KRW mark last year. 'Boy Chanel Small' also increased by 8.5%, from 6.14 million KRW to 6.66 million KRW, and 'Boy Chanel Medium' rose by 7.4%, from 6.71 million KRW to 7.23 million KRW.

Since news of the price hike broke in July last month, open run lines have continued for more than a week in front of department stores. Even in rainy and bad weather, some arrived 3 to 4 hours before the department store opening time, setting up mats and chairs to wait. Because it was impossible to know the stock status of products at each store, some who failed to purchase products on weekends took weekdays off to visit the stores.

This is the third open run this year due to Chanel's price hikes. Chanel raised prices on some products in February. In April, open runs continued for several weeks due to unconfirmed rumors of price increases, but prices were not raised in the end. Last year, prices were raised twice, and each time, crowds gathered in front of stores. Professional 'resellers' who buy products before price hikes to resell joined the open runs, and part-time jobs emerged to stand in line or purchase products on behalf of customers.

As consumer demand for luxury goods rises and prices are frequently increased by item, a mentality of "buy quickly first" has emerged, further encouraging consumers to purchase luxury goods. This is why self-deprecating voices among consumers say, "The luxury goods you buy today are the cheapest."

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