November 03, 2020 11:05
French luxury brand Chanel once again raised its prices by around two percent on Monday, just five-and-a-half months after the last hike due to unflagging demand.
Chanel Korea said prices were raised to equalize differences in different countries due to exchange rate fluctuations.
The price of a Chanel's Maxi Classic handbag rose from W9.93 million to W10.14 million, while prices of wallets and other leather goods rose around five percent (US$1=W1,136).
Chanel said the price hike was "unavoidable" due to the rising euro, but industry insiders point out that the euro is weakening.
The euro rose to the W1,400 level at one point between July and September but is falling now major European countries are implementing another lockdown due to a resurgence of coronavirus infections and the European Central Bank has hinted at a further quantitative easing.
When Chanel last hiked prices on May 14, the euro was worth W1,326. But it has since fallen to W1,321.
Industry insiders say that luxury brands are jacking up prices to profit from pent-up demand in Asia for ostentatious bling.
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