Chanel Suddenly Raises Product Prices... 'Coco Handle' Increased by 10%

Major Product Prices Raised Four Times Last Year
Luxury Goods Prices Increase One After Another Since Early Year
Despite 'Bold Sales Tactics,' Demand Remains Strong, 'Open Run' Continues

[Asia Economy Reporter Lim Hye-seon] The French luxury brand Chanel has suddenly raised its product prices in January. After increasing prices of major products four times last year, Chanel has now raised prices of popular products by at least 10% in January.

Coco Handle 4.67 million KRW → 6.19 million KRW

According to the luxury industry on the 13th, Chanel raised prices of some bags such as the Coco Handle and Business Affinity by up to 16% on the 11th. The price of the Coco Handle Small increased by 10.5%, from 5.6 million KRW to 6.19 million KRW, and the Medium price rose by 10.9%, from 6.1 million KRW to 6.77 million KRW. In the case of the Coco Handle, the price jumped significantly from 5.08 million KRW to 6.19 million KRW in one year, an increase of 1.11 million KRW (21.8%). The Business Affinity (Small) price rose 16.6% from 4.94 million KRW to 5.76 million KRW. The Vanity also saw a price change from 2.98 million KRW to 3.025 million KRW.

Chanel raised prices four times last year alone. As a result, prices of classic bags and vintage bags have exceeded 10 million KRW. The luxury industry expects Chanel to raise prices more than four times again this year. The French luxury brand Dior will also increase product prices by about 10% starting on the 18th. The price hike includes popular products such as the Lady Bag. Goyard has also announced a price increase within this month.

Luxury Brands Competing to Raise Prices

Luxury companies have been rushing to raise their prices since the beginning of the year. The trend started with the Swiss luxury brand Rolex. Rolex raised prices of major watch items by 8-16% from the 1st. The Submariner Oyster, which was 11.42 million KRW, rose to 12.9 million KRW, and the Submariner No Date Oyster increased from 9.85 million KRW to 11.42 million KRW. The French luxury brand Herm?s also raised product prices by 3-7% from the 4th, marking the first increase in a year. The ‘Lindy 26’ rose 4.2% from 9.81 million KRW to 10.23 million KRW. The ‘Gypse 28’ increased 2.3% from 11.03 million KRW to 11.29 million KRW, and the ‘Picotin 22’ rose 6.7% from 3.85 million KRW to 4.11 million KRW.

The Belgian luxury brand Delvaux raised prices by 7-16% from the 12th. The ‘Brillant Mini’ price rose from 7.1 million KRW to 7.65 million KRW, and the ‘Pang Mini’ price increased from 2.77 million KRW to 3.23 million KRW. Companies cited changes in the headquarters’ global pricing policies, exchange rate fluctuations, and rising logistics costs as reasons for the price increases.

Chanel stated, "Chanel regularly adjusts prices considering changes in production costs, raw materials, and exchange rate fluctuations," adding, "This adjustment was made based on Chanel’s harmonious pricing policy, which aims to limit significant price differences among all markets where the Chanel brand operates."

Despite Repeated Price Hikes, Demand Remains Strong

Luxury companies raised prices 4 to 6 times last year. Prada and Louis Vuitton raised prices 6 and 5 times respectively. Prada’s nylon bucket bag price increased by about 28% in one year. Despite continuous price hikes, the luxury industry is growing alone. According to Euromonitor, the domestic luxury market size last year was $14.165 billion (16.8266 trillion KRW), up 4.6% from the previous year, ranking seventh in the world.

Professor Lee Eun-hee of Inha University explained, "With overseas travel restricted, pent-up consumer demand has concentrated on luxury goods, and as prices rise, consumers’ desire to own them is stimulated, creating an atmosphere of ‘today is the cheapest.’ As high-priced luxury goods that are difficult to obtain increase, the resale market is also growing, leading to concentrated demand."

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