May 31, 2023 10:51
Luxury fashion and cosmetics brands are about to hike their prices yet again to stoke the insatiable appetite for their products among status-conscious Korean customers.
Cosmetics maker Sisley said Tuesday it will raise prices by five percent on average from Thursday, while L'oreal has already hiked prices of the Lancôme, Yves Saint Laurent and Biotherm brands by five to 10 percent in duty-free shops.
Chanel hiked prices on May 23 for the second time this year after March. In 2020, the French luxury fashion house hiked prices three times, and in 2021 and 2022 four times each.
Chanel's steady bestseller, the medium-size Classic Flap Bag, went up by over W1 million from W13.16 million in January to W14.5 million in May (US$1=W1,325).
Italy's Bottega Veneta is also expected to raise prices of some brands by around 10 percent, while Louis Vuitton will likely hike prices of major products in Korea sometime next month after raising them already in Japan and France. Louis Vuitton raised prices twice last year.
At the luxury end, price hikes stoke demand rather than depressing it because they make goods seem more desirable to consumers eager to show off their wealth.
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