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| The Louis Vuitton NeoNoe Monogram handbag / Courtesy of Louis Vuitton |
Louis Vuitton has yet again drawn criticism from Korean consumers, as the international fashion house recently raised the price of one of its handbags, following a massive price hike last November.
Critics point out the French luxury brand is cashing in on the growing demand for the product during the forthcoming "wedding season," given that handbags are regularly given as a wedding gift here.
According to industry officials, Tuesday, Louis Vuitton increased the price of the NeoNoe Monogram handbag by 10 percent ― from 1.75 million won ($1,636) to 1.92 million won
Previously, the company raised the product's price by 4.8 percent ― from 1.67 million won to 1.75 million won ― last November, when it hiked the price of the Cluny BB Monogram handbag from 2.24 million won to 2.38 million won and the Pochette Metis Monogram handbag from 2.14 million won to 2.20 million won.
Whenever Louis Vuitton carries out a price hike, the Korean subsidiary says its global headquarters made the decision. Its reluctance in revealing sales and donations are also attributed to the global headquarters, according to Louis Vuitton Korea.
Over the past few years, Louis Vuitton Korea has been accused of not revealing how much it gives in donations.
Because it became a limited liability company in late 2012, it does not have to disclose its income statement and balance sheet. Although a regulatory change last year will soon prompt the company to disclose all the data, there has yet to be a way of verifying whether the firm has donated a substantial amount here as it says.
Louis Vuitton's closed management policy has enraged Korean consumers who complain about poor after-sales service and pricing policies as well.
According to industry officials, Koreans can contact the global headquarters only by mail, while customers in other countries can communicate with the headquarters without difficulty.
Some even say the company seems to look down on Koreans, due to its ongoing popularity here.
Data compiled by Exane BNP Paribas, a French-based finance group, showed Korea ranked second in the cost of luxury goods relative to the global average last year, following China. Luxury goods in Korea were 14 percent costlier than the global average.
In addition to Louis Vuitton, international luxury brands are carrying out price hikes one after another.
Hermes, which has raised product prices at the beginning of every year, increased the price of its Lindy 30 bag from 9.9 million won to 9.95 million won and the Lindy 26 bag from 9.08 million won to 9.15 million won last month.
Chanel, which is one of big three luxury brands along with Louis Vuitton and Hermes, hiked product prices in May, September and November last year. Gucci and Balenciaga steeply raised product prices in the second half of last year as well.
