Despite the ongoing economic downturn, the price increase relay in the luxury industry is unfolding in the Korean market.
According to the luxury industry, on the 15th, FENDI, an Italian luxury brand under the LVMH Group, announced its second price increase this year.
FENDI has set price increases of about 5% for major popular products in Korea. The Peekaboo I See U Petit Selleria bag has jumped about 3.5% from 5,040 dollars to 5,210 dollars, and the Peekaboo I See U Small Selleria bag has risen 4.9% from 6,275 dollars to 6,580 dollars.
Also, the luxury brands Hermes, Louis Vuitton, and Chanel, commonly called Erusha, announced price increases this year.
The reason for the successive price increases in the luxury industry is that the popularity of luxury goods remains hot despite the sluggish economy.
A representative from the luxury goods industry stated, “For luxury brands, there is a steady level of demand from loyal customers who favor these companies. Some customers react sensitively to increased prices, but it does not significantly affect the sales rate.” He added, “Due to these factors, the trend of rising luxury goods prices is expected to continue globally, irrespective of the economy.”
For this reason, shoppers from Korea and abroad are flocking to Japan, where luxury prices have relatively dropped due to the yen’s lowest value in 34 years.
According to Bloomberg on the 17th (local time), the Japanese luxury market is currently experiencing a situation where luxury prices are significantly lower than in Korea, the United States, and Europe. Many luxury brands have not adjusted prices in Japan despite the yen’s depreciation.
For instance, the Tag Heuer Carrera Chronograph, a representative luxury watch brand, can be purchased tax-free in Japan for about 6,150 dollars. The exact product costs 6,450 dollars in New York, showing a difference of more than 1,350 dollars compared to the Japanese price.
Moreover, the popular Chanel Classic Black Lambskin Bag costs 11,700 dollars in the USA. Still, he can be bought for about 10,680 dollars in Japan, a significant saving of around 2,000 dollars if purchased during a trip to Japan.
In addition, numerous popular luxury brands, such as Cartier bracelets, Burberry trench coats, Christian Dior shoes, and Prada sunglasses, can also be purchased in Japan for hundreds of dollars cheaper than Korea, Europe, and the United States.
Chiara Lambia, a 26-year-old student who traveled from Berlin, Germany, to Tokyo, Japan, visited the Ginza district, where luxury stores are located, and spent the day shopping for clothes and bags, dragging two travel bags around.
She said, “I heard that Japan is expensive to travel to, but when I came, it was not burdensome. I made a shopping list focusing on items that I could buy cheaper than in Germany, but I ended up buying more than I expected, so I had to buy one more travel bag in Japan.” The situation had reversed entirely from when the yen was strong, and prices were higher than in Europe.
New luxury products in Japan and SPA brand Uniqlo are showing strength.
Even though it was not an official discount period, tourists filled their shopping carts at a store that uses a whole building from the 1st to the 12th floor as a Uniqlo store.
According to local Japanese media, people from various countries, including Asia, China, Korea, the United States, and Europe, were shopping at Uniqlo, Japan’s representative brand, due to the low prices.
There were long lines at the fitting rooms and cash registers, and the store clerks each explained the tax-free information and benefits.
At the store, purchases over 37 dollars qualify for a tax exemption, allowing foreigners to buy cheap local goods. This makes it a Japanese clothing specialty.
Uniqlo suffered a significant blow to its total sales when a boycott movement occurred in Korea.
However, this year, Uniqlo is expected to improve its profit significantly as foreigners sweep up goods.
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