As French luxury brand Chanel raised its price for the second time this year, the price increased four times in a year.
Following a 10-17% increase in the price of popular handbags in January, this time it increased by 5%, indicating a 20% increase in price this year alone.
According to the industry on the 4th, the prices of representative products such as Chanel's popular classic flap bags, Boy Chanel flap bags, 2.55 bags, and classic chain wallets rose by about 5%.
The classic flap bag (medium), which is popular as a 'gift bag', has been reduced from 11.24 million won to 11.8 million won, the classic small flap bag from 10.52 million won to 11.05 million won, and the classic large flap bag from 12.1 million won to 12.71 million won. The price jumped.
The Boy Chanel flap bag rose from 7.23 million won to 7.59 million won, the 2.55 flap bag large size from 12.1 million won to 12.71 million won, and the Gabrielle Hobo bag, famous for Black Pink member Jennie's bag, also increased from 6.52 million won to 6.85 million won.
Regarding this price increase, Chanel Korea said, "Prices are adjusted regularly in consideration of production costs, raw material changes, and exchange rate fluctuations. policy," he explained.
In addition, since last year, Chanel has introduced a policy to limit consumer purchases along with price increases.
Chanel started checking consumer IDs before selling products in July of last year, and since October of last year, it has imposed a quantity limit for some products so that each person can purchase one per year.
The industry agrees that the image of luxury goods has fallen as the 'open run' phenomenon of running as soon as the store door is opened is repeated.
In addition, consumers who have to endure the inconvenience of having to spend a lot of money while receiving the gaze of 'open run = homeless run' are also tired.
One consumer who tried 10 open runs but could not enter the store said, "Now, looking at a Chanel bag on the street, I start thinking, 'That person must have been waiting on a mat,'" said.
For this reason, some analysts say that Chanel seems to be trying to establish a 'high-end' position like Hermes and Rolex through frequent price increases.
It is viewed as a policy to further solidify the image of the top luxury brand among the same luxury brands.
The Wall Street Journal (WSJ) reported last month that "Chanel is taking advantage of the surge in demand to reposition itself as a higher-tier brand." The trend is spreading throughout the luxury industry.”