Some European luxury brands have again raised their product prices this year just a few months after they announced moderate price cuts following the free trade agreement between Korea and EU in July.

French fashion house Hermes said Thursday that it has increased prices by 5 percent on average from Jan. 1, citing volatile foreign exchange rates and increases in material and labor costs.

“The prices have been adjusted due to some changes in costs for production and distribution. When it comes to men’s and women’s clothes, we lowered the prices 2 percent,” a Hermes Korea official said. 

Among the brand’s icon bags, the prices for “Birkin” and “Kelly” were raised 2 percent and 6-7 percent, respectively, while its popular silk scarves saw 5-6 percent increases in price.

Another French brand Chanel also plans to raise the prices of its watches and jewelry by 5-7 percent from next month, industry sources said. Chanel had also lowered the prices by 5 percent in July and August.

Some brands such as Britain’s Mulberry, Chanel cosmetics and Bvlgari perfume have also increased product prices starting this year, with others expected to follow suit in the coming months.

Consumers complained about no FTA benefits on their luxury shopping here.

“I cannot understand their inconsistent pricing policy. I will continue to buy luxury goods abroad. It’s much cheaper even considering the taxes at the customs desk,” said Jung Hyun-sook, a housewife.

By Lee Ji-yoon
(jylee@heraldcorp.com)