The demand for luxury goods is still continuing to grow in South Korea, despite price hikes and the Covid-19 pandemic.
The high-end fashion house, Chanel, has already raised prices in the market twice this year. The French luxury brand raised the price of the Classic Flap Bag Medium from 8.64 million won to 9.71 million won, and the price of the Classic Flap Bag Large from 9.42 million won to 10.49 million won. Prices of other products, including Boy Chanel, also rose by a similar rate.
Despite the increases, customers are flocking to Chanel boutiques at department stores throughout the country, lining up ahead of opening hours. While some customers complain about a constant rise in prices, the popularity of luxury goods continues to grow.
“Prices increases for already expensive products give off the impression of rarity and something that only a few can afford, which eventually boosts demand,” said Lee Eun-hee, a Consumer Studies Professor at Inha University. “Customers are willing to spend more to buy them. Ownership of luxury goods is seen as a competition among many to demonstrate the ability of an individual, a means to justify discrimination among people,” Lee warned.
