Global luxury jewelry brands, including Cartier and Fred, have announced a price increase. Among some consumers, including couples preparing for marriage, a trend has emerged where they rush to buy items as soon as stores open (a practice of running to purchase goods upon opening). The perception that "now is the cheapest" has become widespread, prompting a rush to purchase products before the price increase. The number of consumers looking for second-hand luxury shopping centers where they can buy luxury items at relatively reasonable prices is also increasing.
According to industry sources on the 3rd, the luxury jewelry brand Cartier will raise prices starting on the 4th. The increase is expected to be around 5 to 7%. On that day, Mr. A, in his 40s, who visited the Cartier store at Lotte Department Store in Sogong-dong, Seoul, said, "I hurried to arrive at the store by 8:20 a.m., but there were already over 30 people standing in front of me" and added, "The earlier your order number is, the higher the success rate of the open run. I’m not sure if I can buy something today (the 3rd)." That day, Mr. A received number 43.
In the domestic luxury brand community ‘Chicment,’ which has 710,000 members, inquiries about open runs at Cartier stores have surged. These posts mainly contained questions like whether it would be a good idea to do an open run on the last day before the price increase on the 3rd and which store would be best for the open run. Reviews left by those who participated in open runs during the Lunar New Year holiday were also frequently posted.
Fred, a French luxury jewelry brand that became famous with BTS member Jin as its global ambassador, will raise prices starting on the 17th of this month. Most product prices are expected to increase by about 5 to 10%. A department store official noted, "As the price increase has been announced, the number of customers calling to ask about products they want to purchase before the prices go up has increased."
Luxury jewelry brand products have already seen prices soar due to rising gold prices. Christian Dior increased the price of the Rose des Vents necklace from 3.7 million won to 4 million won. Van Cleef & Arpels raised the price of the Vintage Alhambra pendant from 4.76 million won to 4.95 million won.
Mr. B, a 30-something office worker who plans to marry in April, said, "Whenever I see products from brands that have already raised their prices, I think, ‘I should have just bought it back then’" and added, "If I want to buy an engagement ring from a brand that hasn't raised its prices, I need to do an open run or make an appointment to visit the store."
The news of price increases from luxury jewelry brands like these has led to a growing trend of consumers turning to second-hand luxury items.
According to the largest second-hand luxury platform, Guguce, the transaction volume of luxury jewelry from January to June last year increased by 25% compared to the same period in 2023. In the second half of the year (July to November), it also increased by 11%. The number of customers visiting Kankas Department Store, which is considered Asia's largest luxury mint-condition second-hand shopping center, has more than doubled compared to the same period last year.
Lee Hye-ja (60), who purchased a second-hand Chanel ring, said, "When I need to buy jewelry with significant meaning, like for a wedding or an event, I think I should buy new products even if the prices have gone up, but for everyday use, mint-condition products are fine" and noted, "The price is reasonable, and there’s not much difference from new products."
Experts predict that open runs and second-hand transactions centered around luxury brands that have announced price increases will continue for a while. Eun-hee Lee, a professor in consumer science at Inha University, stated, "The open runs for luxury brands are a result of consumer psychology and choices being pressured by the announcement of the price increase." Professor Kwak Geum-joo of Seoul National University remarked, "As people find satisfaction with second-hand luxury goods and the resale market is growing, related transactions are expected to continue."