Chanel raises prices in South Korea for fifth time this year

Chanel has raised prices on some of its handbags, wallets and other products sold in South Korea — the fifth price increase the brand has made this year.

According to industry sources, Chanel raised prices on bags and other key products by an average of about 5 percent starting Tuesday. The Classic Flap Bag in medium, one of the brand's signature items, rose from 17.9 million won ($12,600) to 18.8 million won, an increase of 900,000 won, or 5.0 percent. The small Classic Flap Bag went up 880,000 won, or 5.1 percent, from 17.2 million won to 18.08 million won.

The Boy Chanel Flap Bag increased 620,000 won, or about 5.3 percent, from 11.73 million won to 12.35 million won. The Classic Chain Wallet (WOC) rose about 6.1 percent, from 5.99 million won to 6.355 million won, an increase of 365,000 won.

Tuesday's adjustment marks Chanel's fifth price increase in South Korea this year. The brand raised prices on some bags by about 7 percent in January, then raised prices on beauty products — including lipsticks and perfumes — by an average of 3 to 4 percent in April. That same month, it raised prices on the Chanel 25 bag by an average of 3 percent and also increased prices on jewelry and watches.

According to filings on the Financial Supervisory Service's DART system, Chanel Korea posted sales of 2.01 trillion won last year, up 9.1 percent from 1.84 trillion won the year before, surpassing the 2 trillion won mark for the first time. Operating profit rose 24.6 percent to 335.8 billion won, while net profit for the period climbed 24.3 percent to 256.1 billion won.