The French luxury jewelry brand Van Cleef & Arpels will raise domestic product prices by an average of 10% starting on the 25th. This brand raised prices by 3-4% in January of this year and is once again increasing prices just four months later. This increase comes earlier than the usual adjustment period, which typically occurs around May each year. Among consumers, there are complaints about this being a 'surprise increase.'
According to related industries on the 24th, Van Cleef & Arpels has adjusted prices globally around May every year. This year, due to fluctuations in exchange rates, the increase in Korea is expected to be larger than in overseas markets. While other major markets such as the U.S. and Europe are increasing prices by around 5%, domestic products will see an average increase of 10%. All product categories are subject to the increase, but it is reported that the increase will be particularly pronounced in the 'Vintage Alhambra Mother of Pearl' collection, which is popular as an entry-level product.
Nicolas Bos, the CEO of Richemont, the parent company of Van Cleef & Arpels, noted at the end of last year, 'Despite the rise in gold prices, we will approach the jewelry price increase cautiously.' However, in January, prices were raised by 3-4% in some markets, including Korea, citing exchange rates as the reason. In Korea, this means prices have increased twice in less than six months.
With the price increase implemented 1-2 weeks earlier than usual, consumers are expressing dissatisfaction, referring to it as a 'surprise increase.' This is due to the previous price increase occurring in January without prior notice.
Meanwhile, not only Van Cleef & Arpels but also the Italian jewelry brand Pomellato, the Swiss watch brand OMEGA, and Bvlgari (in the watch sector) have already raised prices this month.
Another jewelry brand in the Richemont Group, Cartier, is also scheduled for a regular price increase next month. The luxury watch brand Longines, under the Swatch Group, will increase prices in June.
Luxury brands cite rising raw material costs and exchange rate fluctuations as reasons for price increases. However, there are concerns that the price increase cycle in the Korean market is becoming increasingly shorter. Major luxury brands such as Chanel, Louis Vuitton, and Hermès have also raised prices several times in the past year.
An industry insider said, 'It is too short a cycle to simply attribute to exchange rates or gold price increases,' adding, 'It seems to be taking advantage of reduced consumer resistance to price increases as luxury demand has risen following the COVID-19 pandemic.'