The Higher the Price, the Better It Sells in Korea... Luxury Brands Post Record Sales Despite "Gutsy" Price Hikes
by Seo Jiyeong
Published 08 Apr.2026 09:47(KST)
Updated 08 Apr.2026 11:18(KST)
Bulgari's Korea Sales Reach Record 574 Billion Won
Strong Demand Persists Despite Repeated Price Hikes
Luxury Industry Sees "Multiple Rounds of Increases" Becoming the Norm
Despite a downturn in consumer sentiment due to high interest rates and inflation, the luxury market is displaying a completely different trend. Even as major brands continue to raise prices, demand has remained resilient, leading to a clear pattern where price hikes are actually driving sales growth. Experts attribute this to the robust demand in the Korean market, which allows brands to raise prices assertively.
Bvlgari Achieves Record-High Sales and Profits
According to the audit report released on April 8, Bvlgari Korea posted record results last year, with sales reaching 574 billion won and operating profit at 108.9 billion won. Compared to the previous year, sales surged by 37% and operating profit by 69.6%. Net profit for the period also more than doubled, reflecting a marked improvement in profitability.
The medium to long-term trend has been equally dramatic. In 2021, sales stood at around 270 billion won, but within just a few years, they have more than doubled. This is attributed to strong and stable demand for core product lines such as jewelry and watches in the domestic market. In particular, the expansion of consumption focused on high-end products appears to have driven up the average transaction value.
"You Can Sell at High Prices in Korea"... Bold Pricing Amid Economic Downturn
Behind these results is a consistent pattern of price increases. Last year alone, Bvlgari adjusted its prices three times. Despite near double-digit hikes in the price of watches and jewelry, demand remained largely unaffected.
This is a clear example of the Veblen effect, where higher prices do not suppress demand but rather stimulate it. In fact, price increases have further enhanced the brand's exclusivity and symbolic value, fueling consumer purchases.
Chanel and Tiffany & Co. Join In... Price Hikes Become Routine
This trend is spreading throughout the industry. Chanel has recently raised prices on its flagship handbags in succession, with some items now exceeding 10 million won and core product lines reaching into the 20 million won range.
Other major brands such as Tiffany & Co., Van Cleef & Arpels, and Louis Vuitton are also implementing frequent price adjustments, continuing the so-called 'multiple round increases.' This illustrates that pricing strategy has become a core component of brand management.
"Price Equals Value"... Changing Consumption Patterns
Experts note that the essence of luxury consumption is undergoing a transformation. Whereas in the past, high prices suppressed demand, now the price itself is perceived as a marker of status and value.
Amid these developments, the principle that "the better it sells, the higher the price" is becoming increasingly entrenched. While consumer burdens are growing, many believe that brands are likely to continue raising prices for the foreseeable future, as this approach enhances both profitability and symbolic value.
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