October 29, 2019 13:25
French luxury brand Chanel will yet again hike product prices in Korea before the end of this year.
Chanel will raise the prices of handbags on Thursday. A staffer claimed, "We had to raise prices between 3 to 13 percent, due to changed production costs, raw material costs and the exchange rate."
The price hikes will also take place in other countries, whereas on some previous occasions only Korea was targeted as a captive market in thrall to overpriced, status-affirming bling.
Chanel has usually jacked up prices quarterly every year in Korea, but this year it already raised prices of some 400 skin care and perfume products in January and 462 jewelry and other accessory products in March.
The brand has long capitalized on the so-called "Veblen Effect" whereby luxury products sell better the more expensive they are.
The millennial generation tends to open their wallets as long as a product satisfies their needs, and this has led to steady increases in sales of luxury products.
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