The luxury industry is set to raise prices starting at the beginning of the new year. Recently, with the exchange rate of the won against the dollar soaring into the high 1,400s, some brands are expected to increase prices more significantly than last year.
According to the industry on the 31st, the French luxury brand Hermès plans to raise the prices of clothing, bags, and jewelry by an average of over 10% starting January 3. Hermès has previously increased prices once at the beginning of the year, but this year, it will raise prices multiple times in January based on the item and product.
Chanel and Dior, which raised prices by about 10% in January, are also reportedly planning to raise prices, starting with jewelry.
The luxury watch brand TAG Heuer, part of the French luxury group LVMH, will increase prices by an average of about 7% for some items starting January 2. Some products are expected to see price increases of up to 30%. The same group's jewelry brand Tiffany is expected to adjust prices on January 15 next year. Tiffany has previously implemented two price increases of about 5% in January and October of this year.
Swiss luxury watch brand Rolex is also expected to join the price increase trend. Earlier this year, Rolex raised prices of key products by about 8%, and has increased prices by over 5% again in June due to rising gold prices. Swiss luxury watch brand Breitling is also expected to raise prices of all products by an average of about 8% around January 20.
Global consulting firm Bain & Company has forecasted that the luxury market will decrease in size by 2% this year. As a result, the industry anticipates that the price increase will be larger than in previous years due to slow market growth and rising exchange rates.