In Science and Space: As the coronavirus limits travel and duty-free shopping, Koreans are fueling a luxury boom at home. Chanel locked down nearly a third of potential buyers, preventing big buyers from reselling her $10,000 bag at her 20% markup. The well-known French fashion and luxury goods company told Reuters that traffic to its South Korean boutiques has been on the rise since it began looking for customers it believed were only hoarding to go to others in the switching resale market he said it was declining.
It’s the second-largest luxury market, and research firms estimate it’s just one of seven top markets (the other being China) whose sales increased last year from 2019 level. However, offers on brands like Chanel are tightly controlled, maintaining exclusivity and increasing attractiveness, with no online shopping options other than cosmetics, perfumes and a few small accessories. Such is the appetite in downtown Seoul, where long lines form outside department stores before dawn as shoppers prepare for what’s called an “open run” that sprints to Chanel’s doors on time.
“After analyzing their buying behavior, we were able to identify them (large buyers). Since the introduction of this policy, he has seen a 30% decrease in traffic to the boutique,” Chanel told Reuters said in a statement. It doesn’t say exactly how it ranks these customers as potential big buyers, and the privately held company doesn’t publish sales figures by country. Chanel’s strategy, which has been in place since July last year, came as global demand for luxury goods picked up again after the worst of the coronavirus pandemic.
“We arrived At 5:30 a.m. for an open run, I was notified that there were more than 30 people in front of me,” a shopper told Reuters outside a Chanel boutique in Seoul. When he entered the store – almost 10 hours later – the item he wanted was sold out. Considering this ferocious demand on the resale market, a medium-sized Chanel Classic flap bag sold for his 13.5 million won ($11,031) in January. KREAM is a platform that offers everything from sneakers to tech to regular retail tech. Luxury Prices, a subsidiary of tech giant Naver.