French luxury jewelry brand Fred plans to raise prices on some items. Fred is a high-end jewelry brand under the global luxury group Louis Vuitton Moët Hennessy (LVMH), and it recently attracted attention by appointing Jin, a member of the K-pop idol group BTS, as its first global ambassador.
This price increase comes 11 months after a roughly 7% increase on some products in March last year.
According to related industry sources on the 24th, Fred is set to raise prices on the 17th of next month. The increase is expected to be around 10%.
A representative from a department store where Fred products are sold said, "It is true that the price increase was announced to VIP customers on February 17," but noted, "While the increase may vary by product, it seems likely to be at least 2% and up to 10%. In particular, the 'buckle bracelet' is expected to rise by about 5% to 7%."
Notably, it seems that prices for Fred's signature bracelet buckle and cable will also be increased. Currently, cables can be purchased for about 400,000 to 500,000 won on the official website, but prices are expected to exceed 500,000 won after February 17.
Additionally, the Posten Ring (medium size, 18K, white gold, diamond), which is frequently sought after for anniversaries, proposals, and wedding rings, is currently available for 3.68 million won, but if prices increase by up to 10%, it could substantially rise to around 4 million won. The Champs Infinis Ring (medium size, 18K, pink gold, diamond) is priced at 8.32 million won, which may rise to over 9.15 million won with a maximum 10% increase.
As the new year begins, a relay of price increases among luxury brands such as Hermès, Rolex, and Gucci is underway, and it appears that luxury jewelry brands are joining the price hike trend.
The French luxury brand Chanel recently raised the price of its handle-decorated flap bag on the 9th and is also expected to increase prices in the jewelry sector starting in February. Tiffany & Co. plans to raise prices from the 5th of next month, with increases anticipated to be between 5% and 7%. Boucheron will also raise prices on some products starting on the 6th of next month, expecting an average increase of about 5%.
The luxury goods industry explains that the reasons for the price increase stem from rising raw material costs and fluctuations in exchange rates. An industry source said, "As prices for raw materials, including gold, and labor and logistics costs have risen, we have decided to increase the prices on some products in accordance with the headquarters' price adjustment policy," adding, "Luxury goods mostly rely on imports, making them sensitive to exchange rate fluctuations. Since there is no sign of exchange rates decreasing, we felt we could not maintain the existing price levels."
However, it seems difficult to avoid criticism that these price increases occur like an annual event leading up to the 'wedding season.' The luxury jewelry industry has traditionally raised prices in anticipation of the spring when weddings are most frequent.
Lee Eun-hee, a professor at Inha University, mentioned, "When a well-known luxury brand raises prices, other brands are likely to follow suit," adding, "While higher price points can stimulate consumer desire for ownership and potentially increase sales, there is also a possibility that they may be shunned in the newlywed jewelry market."