Demand for luxury goods in South Korea has remained resilient despite repeated rounds of price increases by major brands. Chanel and Bulgari, which raised prices multiple times last year, both achieved record-breaking results in the Korean market.
According to Bulgari Korea's audit report released Monday, the company posted revenue of 574.06 billion won ($422 million), operating profit of 108.99 billion won, and net profit of 83.33 billion won last year. Revenue rose 37% and operating profit surged 69.6% year-on-year, both hitting all-time highs.
Bulgari has grown rapidly in Korea in recent years. Bulgari Korea's revenue, which stood at around 272.2 billion won in 2021, more than doubled to 574.1 billion won last year over the five-year period.
Buoyed by the strong results, Bulgari plans to raise prices on some products on May 20. The increase is reportedly around 10%. Last year alone, Bulgari raised prices in Korea three times. It hiked watch prices by an average of 8% in April, followed by a 7–10% increase on jewelry and other items in June, and made additional adjustments in November. The continued price hikes suggest that demand has not weakened despite the successive increases.
Chanel is in a similar position. Chanel Korea disclosed record revenue of 2.013 trillion won ($1.48 billion) for last year in March. Shortly after announcing the improved results, the company raised beauty product prices on May 1 and increased the price of the "Chanel 25" handbag by approximately 3% on May 2. The small-size handbag now costs 10.42 million won. Chanel did not provide a reason for the price hikes.
Consumers point out that repeated price increases have become the new normal in the luxury industry. The parade of price hikes has continued into this year. Van Cleef & Arpels raised product prices by 2–5% on April 5, just two months after a previous increase in January. The Vintage Alhambra pendant in 18K white gold with mother-of-pearl rose from 5.25 million won to 5.35 million won, a 2% increase.
Tiffany & Co. raised prices by around 10% in February. The Tiffany Knot ring in rose gold and platinum with diamond setting climbed from 4.17 million won to 4.77 million won, a 14% increase of 600,000 won. In January, Rolex and Hermès had each raised prices on products sold in Korea.
According to market research firm Euromonitor, the South Korean luxury goods market was estimated at approximately 23 trillion won ($16.9 billion) in 2024. Analysts note this is a sizable market for a single country, and when population is factored in, Korea's per-capita luxury spending ranks among the highest in the world.