The global luxury market was predicted to experience a decline of up to 35 percent in 2020 as a result of the Covid-19 pandemic.
To combat this hit, luxury brands are raising prices.
Chanel and Louis Vuitton increasing prices
French luxury brand Chanel said that it was increasing prices on handbags and some small leather goods worldwide, according to Reuters.
The prices will increase between five and seventeen per cent, and is aimed to offset a rise in the cost of raw materials.
"These adjustments are made while ensuring that we avoid excessive price differentials between countries, in line with our commitments regarding price harmonization," added Chanel via Reuters.
Another luxury brand, Louis Vuitton, has also been increasing prices of its handbags, mainly in Europe and the US.
But in South Korea, the brand increased its prices from five to 10 per cent.
Based on a quarterly report released by Louis Vuitton's parent company, LVMH, its revenue fell 15 per cent compared to the same period in 2019.
Long queues in South Korea
Long queues were spotted outside luxury stores in South Korea as soon as rumours of the price hikes started to spread online.
Shops in the country were allowed to reopen in April 2020 as social distancing rules were eased.
Customers reportedly arrived at a Chanel store in Seoul as early as 5am, raising concerns that another Covid-19 cluster could possibly emerge.
Korea Times reported that the Seoul Metropolitan Government is considering imposing an administrative order to suspend Chanel stores in Seoul.
Other luxury brands increasing prices in South Korea
Besides Chanel and Louis Vuitton, luxury jewellery label Tiffany & Co. has increased its prices by 10 percent in South Korea.
A spokesman for the company told Reuters:
"Tiffany regularly reviews its pricing strategy including within each of the markets in which we do business to reflect among other things, currency fluctuations and business input costs."
Top images from Louis Vuitton/FB & Chanel/FB.