Are Chanel Price Increases Driving Away Customers in South Korea?

Just a week or so ago we wrote about South Korea having the highest per capita spending on luxury goods.

Read: South Koreans Spend Most Per Capita on Luxury Goods 

With that one might expect that brands like Hermès, Chanel, & Louis Vuitton are just swimming with success there. However, now comes word that even for these supposedly committed designer shoppers, Chanel prices are just too high. 

According to the Korea Times, no longer must you wait six or seven hours outside the boutiques just to get inside. A person interviewed says she just walked right in, and that hasn’t happened in years. And the reason . . . all of those Chanel price hikes over the last few years. Just last November 2022, in South Korea bag prices spiked 13%. 

Read: Chanel Prices Just Increased in Korea. Are We Next?

As in the United States (which has not had a price hike lately), the cost of a Chanel medium flap has nearly doubled since November 2019. 

So maybe predictions of South Korea becoming the “new China” in terms of lux market growth, are premature? Or, the reality of cost of living spikes have quickly taken a toll on those who save up for the big Chanel purchase. 

On the other hand, maybe that’s Chanel’s intention . . . to service the über-wealthy. Remember, to achieve goals of “exclusivity” the product cannot be accessible (whether by supply or inability to pay) to the masses. In other words, don’t cry for Chanel. This may be exactly what the brand wants.

What do you think? 

Image courtesy: koreatimes.co.kr