After lowering Korean prices in March by as much as 20 percent to create price balance with Europe’s weak Euro, Chanel announced that Korean shoppers will now see a hike in prices starting next month.
Chanel will raise the price of its ’2.55 Vintage’ from $5,250 to $5,600, and ‘Timeless CC’ from $3,000 to $3,180, –approximately a 7 percent increase.
The good news for Korean consumers is that shoes and wallets, which did not see their prices lowered, will now see slightly lower prices. Ballerina Shoes or sneakers will see price cuts of up to 18 percent.
In the short term, it will be a boost for Chanel sales in Korea with consumers heading to the Chanel stores to buy before prices go up. Popular products are said to have already sold out at most of the stores.
Along with the announcement Chanel also said that it intends to regularly adjust its prices once or twice every year.
“The Chanel headquarters has decided to readjust the price twice a year in order to ensure price harmonization ― those who buy the bag in Korea should not pay more than customers in Europe,” a spokeswoman said.
Weak won to blame
“We have seen a weaker won effect since March and it is inevitable that some prices will go up,” she added, saying that the price adjustments are an effort to keep the price gap in different markets to less than 10 percent.
Chanel declined to confirm what the price ranges were in other countries.