Products are displayed in the window of the French luxury brand Hermes store at the main branch of Shinsegae Department Store in Jung-gu, Seoul on December 31st. (News 1)
Luxury brands are set to raise prices again in 2025, even as consumer confidence has fallen to an all-time low and concerns about unethical production and rising costs have hurt their appeal.
The increase will be even more noticeable for South Korean customers as the won has plummeted in value amid political turmoil that began with the brief but consequential imposition of martial law in early December.
French fashion house Hermès will raise prices on its flagship bags, clothing and accessories starting Friday, according to industry sources. Price increases will vary by category, but the average increase is expected to be approximately 10% across all affected items. Jewelry featuring gold can be significantly more expensive, with the price of gold rising by about 30% in 2024.
Last year, Hermès raised the price of its iconic Birkin bag by 20 percent.
TAG Heuer, the Swiss watchmaker owned by luxury conglomerate LVMH, will also raise prices on some products by about 10% starting Thursday.
Italian brand Loro Piana will increase prices on handbags and clothing starting Saturday. The price increase varies depending on the product. Some of the popular loom handbags will increase in price by 8% from their current price of 68.6 million won (approximately $46,500), and some clothing items could be up to 23% more expensive.
As is industry practice, other watch manufacturers and fashion brands are expected to follow suit.
“Prices for luxury brands will reflect the recent sharp rise in exchange rates ahead of time,” a source in the luxury goods industry told JoongAng Ilbo, an affiliate of Korea JoongAng Ilbo.
“Luxury brands are affected by economic conditions, so they regularly raise prices even during recessions.”
Written by Jang Joo-young and Kim Joo-young ((email protected))
