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Korea : Chanel carries out 3rd price hike in 2017

Korea Chanel carries out 3rd price hike in 2017

Chanel has raised the prices of dozens of its popular products by up to 30 percent at the beginning of November.

This is the third price hike by the French fashion house in Korea this year, after hikes in May and September.

SEE ALSO : Korea : Luxury brands forced to disclose business performance

According to industry officials, the price of a Chanel Coco Handle Bag with a lizard handle rose to 6.15 million won (US$5,510) from 4.76 million won.

Classic Caviar medium-size bags are available at 6.28 million won, up from 5.98 million won, and the jumbo handbags are 7 million won, up from 6.67 million won.

Chanel is selling Boy Chanel small handbags for 5.49 million won, up from 5.23 million won, and large ones for 6.1 million won, up from 5.83 million won.

The global luxury brand raised the prices of wallets and several other products sold at local duty free shops by 4 percent on average in May.

It also hiked the prices of 2.55 Classic handbags and Mademoiselle Vintage bags sold at local department stores by up to 17 percent in September.

Chanel cited the harmonization of international prices as a reason for the recent hike, as before.

In addition to Chanel, Dior and Balenciaga recently raised the prices of several products by up to 30 percent.

Louis Vuitton and Gucci have lately hiked the prices of several products as well.

The global luxury brands have been criticized for tending to carry out price hikes in Korea’s wedding season.

They have taken advantage of their handbags’ popularity as wedding gifts among wealthy people in Korea.

SEE ALSO : Luxury brand exhibition in Seoul – Louis Vuitton, Cartier, Chanel

Although the international companies have raised the prices of their products for years without specific reasons, they have been able to avoid disclosing their key corporate information, such as sales and amount of donations, as they are limited liability companies.

The companies therefore have been suspected of concealing their high amounts of dividends and royalties paid to their headquarters, compared to their low amount of donations.

However, they will be forced to reveal their business performances starting next October 2018, following the recent revision to the External Audit Law, which will allow regulators to subject limited liability companies to external audits.

(Source: Korean Times )

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