"Even if we raise prices three times a year, people still buy" Italian luxury brand doubles net profit in Korea [Luxury Price Watch]

[The Financial News] Italian luxury jewelry and watch brand Bulgari posted its highest-ever results in the Korean market. Analysts say that a series of price hikes in Korea helped drive sales growth, even as many luxury brands have been raising prices.
According to Bulgari Korea’s audit report released on the 11th, last year’s revenue came to 574.06 billion won, up 37.0% from a year earlier.
Over the same period, operating profit rose 69.6% year-on-year to 108.99972 billion won, while net profit for the year surged 106.9% to 83.33505 billion won.
Bulgari has grown rapidly in Korea over the past five years. In 2021, Bulgari Korea’s revenue was around 272.2 billion won, but by last year it had climbed into the 574.1 billion won range, more than doubling in five years.
Some observers argue that these strong results were largely driven by Bulgari’s aggressive price increases.
In Korea, Bulgari raised prices three times last year. In April, it increased watch prices by an average of 8%. In June, it lifted prices on some jewelry and other items by 7–10%. The brand then carried out another round of price hikes in November.
Bulgari is raising prices again in the Korean market this year.
Industry sources report that on the 20th, Bulgari will increase prices on some products by around 10%.
In Korea, demand has remained resilient despite repeated price hikes, and many expect luxury brands to continue raising prices for the foreseeable future.
Meanwhile, French luxury brand Chanel also logged record results in Korea last year, with sales exceeding 2 trillion won.
According to financial results announced by Chanel Korea on the 25th of last month, last year’s revenue was 2.013 trillion won, operating profit was 336 billion won, and net profit came in at 256 billion won.
Chanel, which has been criticized for raising prices multiple times every year, is once again pushing through a series of hikes this year.
On January 13, Chanel raised prices on bags such as the Chanel Classic Flap Bag by about 7%, and also increased prices on jewelry later that month.
On the 2nd of this month, the brand raised the price of the CHANEL 25 Handbag by about 3%.
Following this latest increase, the small CHANEL 25 Handbag now costs 10.42 million won.
newssu@fnnews.com Kim Su-yeon Reporter