Overseas luxury brands are once again raising product prices early in the new year.
According to the retail industry on Jan. 2, Hermes has raised the prices of its shoe products starting from Jan. 1. Among the various models of “Oran” sandals, the one crafted from lizard leather has witnessed a substantial price increase of 43.7 percent, soaring from 2.45 million won (US$1,869) to 3.52 million won. The consistent bestseller “Royal Loafer” has also experienced a 14.5 percent increase, rising from 1.52 million won to 1.74 million won. The men’s “Hike Ankle Boots” have seen a price hike of 11.0 percent, going from the previous 2.28 million won to 2.53 million won. In January of the previous year, Hermes also raised prices by 5 to 10 percent for products such as clothing, bags, and shoes.
This month, Chanel is expected to raise prices on jewelry and watches. Chanel had already increased bag prices in March and May of last year, followed by a footwear price hike in October.
Rolex, a name synonymous with luxury timepieces, has also raised the price of its its in-demand model “Datejust” 36 mm, popular as a wedding gift and for other special occasions, by 8.5 percent from Jan. 1 as well. The price has increased from the previous 11.42 million won to 12.39 million won. Similarly, the price of the same model in the 41 mm size has increased by 8.1 percent, going from 13.17 million won to 14.24 million won.
Goyard has raised the prices of certain products, including the Saint Louis, by around 5 percent, while Rolex, renowned for its wedding gift watches, has increased the prices of some products by approximately 8 percent.
In addition, Prada, Tiffany, and others have also announced price increases for their products later this month. At the end of last year, brands like Gucci and Burberry Beauty also raised prices on some of their products.
According to the Ministry of Trade, Industry, and Energy, the sales growth rate of overseas famous brands in the top three department stores -- Lotte, Shinsegae, and Hyundai -- in November decreased by 1.6 percent compared to the same period the previous year, marking the fourth consecutive month of contraction since August. The decline in luxury sales at department stores for four consecutive months is the first time in 20 years since July to October 2003. Despite the slight decrease in consumer spending on overseas luxury brands due to the economic downturn, the trend of “silent price increases” continues as a measure to offset these challenges.