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Hermès, LVMH-owned luxury brands to raise prices despite economic woes

Published: 01 Jan. 2025, 18:38 Updated: 01 Jan. 2025, 19:01

KIM JU-YEON
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Items are displayed in French luxury brand Hermes store's windows at Shinsegae Department Store's flagship branch in Jung District, central Seoul, on Dec. 31. [NEWS1]

Luxury brands will raise their prices once again in 2025, despite consumer sentiment having dropped to a record low and the allure of these items taking a hit due to concerns over unethical production and rising costs.

The price hike will likely be even more noticeable for Korean customers, as the won's value has plummeted amid political turmoil, beginning with the brief but consequential imposition of martial law in early December.

French fashion house Hermès will increase prices for its flagship bags, clothing and accessories starting Friday, according to industry insiders. While the price increases will vary by category, the average hike is expected to be around 10 percent for all affected items. Accessories featuring gold could become significantly more expensive, with gold prices having risen by about 30 percent in 2024.

Last year Hermès raised the price of its iconic Birkin bag by 20 percent.

Swiss watchmaker Tag Heuer, owned by luxury conglomerate LVMH, will also increase prices on some of its products by around 10 percent starting Thursday.

Italian brand Loro Piana will raise prices on its handbags and clothing from Saturday. The price hikes will vary depending on the item. Some of their popular Loom handbags will see prices rise by 8 percent from the current price of 68.6 million won ($46,500), while some clothing items could become as much as 23 percent more expensive.

Other watchmakers and fashion houses are expected to follow suit, as is customary in the industry.

"Luxury brand prices will preemptively reflect the recent sharp rise in exchange rates," a source from the luxury industry told the JoongAng Ilbo, an affiliate of the Korea JoongAng Daily.

"High-end brands raise prices periodically, even during a recession, because they are influenced by the economy."

BY JANG JOO-YOUNG, KIM JU-YEON [[email protected]]