Luxury brands have started raising prices one after another with the start of the new year.

According to the industry today (5th), French luxury brand Hermes, which is called 'luxury among luxury goods', raised the price of products such as clothing, bags and shoes by 5-10% from the previous day.

The price of the bag 'Garden Party 36' increased by ▲7.8% from 4.98 million won to 5.37 million won, and the price of 'Lindy 26' increased by ▲7.5% from 10.23 million won to 11 million won.

Hermes raises the price in January every year, but it has been announced since last year that it will raise the price from this year because the increase is small compared to competitors.

Italian luxury brand Prada also raised the price of all products by 5-10% from today.

In addition, Swiss luxury watch brand 'Rolex', which is the most popular gift watch, also raised the price of major products such as the popular model Submariner by 2-6% on the 2nd.

'Submariner Non-Date' increased from KRW 11.42 million to KRW 11.69 million, and 'Submariner Date' increased by ▲2.4% and ▲6% from KRW 18.81 million to KRW 2030,000 based on a combination. .

As Hermes was the first to raise prices among the so-called 'Erusha (Hermes, Louis Vuitton, Chanel)', which is called the three leaders of luxury goods, Chanel and Louis Vuitton are also expected to raise their prices in the first half of the year.

Chanel raised prices four times in January, March, August and November of last year, while Louis Vuitton raised prices in February and

As such, while the popularity of luxury brands continues despite the economic recession, it has been found that global luxury brands are reducing the benefits of partnerships with domestic department stores one after another.

Enlarge Image

According to the industry today, brands belonging to the global luxury group LVMH Group have been excluded from department store wedding mileage partnerships one after another following last year.

'Wedding mileage' is a membership for newlyweds preparing for a wedding ceremony and gifts, and is a benefit that is returned as a gift certificate according to the accumulation rate when purchasing a certain amount or more.

In the case of Lotte Department Store, the luxury jewelry brand Tiffany & Co. was excluded from the mileage partnership in October of last year, and Celine stopped accumulating wedding mileage from today, three months later.

Luxury jewelry brand Boucheron was originally able to accumulate up to 50% of the purchase amount, but since August of last year, it has been excluded from the mileage benefit.

Likewise, Hyundai Department Store announced that wedding mileage accrual at Tiffany & Co. was excluded during the same period.

In this way, the price of luxury goods is rising one after another, especially as the benefits of luxury brands, which are popular as wedding gifts, are reduced, and consumers are responding with disappointment.

However, as LVMH Chief Financial Officer Jean-Jacques Guigny said in a conference call last October, "Luxury goods do not follow the general economy," luxury brands expect consumer demand to remain strong despite a series of price hikes.

(Photo = Yonhap News, LVMH website capture)