An unusual price cut has emerged in the luxury industry, which has repeatedly raised prices every year. French luxury jewelry brand Boucheron lowered the prices of some products in its representative collection, Quatre, by up to nearly 11%. Amid a decline in international gold prices and other factors, interpretations also suggest that this adjustment was made considering the consumer burden resulting from accumulated price increases.
According to industry sources on the 14th, Boucheron lowered the prices of some products in its representative collection, Quatre, by 5% to 11% compared to previous levels.
The representative product, the 'Quatre Classic Pendant Large (L),' was reduced from 9.98 million won to 8.90 million won, a decrease of 1.08 million won (10.8%). The 'Quatre Classic Pendant Small (S)' was also lowered from 7.51 million won to 6.90 million won, a reduction of 610,000 won (8.1%). The 'Quatre White Edition Pendant Small' dropped from 7.31 million won to 6.71 million won, and the 'Quatre Black Edition Pendant Small' fell from 8.28 million won to 7.60 million won, each representing an 8.2% decrease. The price of the 'Quatre Classic Small Ring' also dropped by 5.7%, from 7.41 million won to 6.99 million won.
A notable point is that products whose prices had risen significantly in July were included among those subject to this price cut. Boucheron raised the prices of major products on July 22. While the increase rate for a significant number of products was around 6%, the Quatre Classic Small and Large Pendants saw increases of more than 12%.
Considering that the July increase rate for the Quatre Classic Large Pendant, whose price has now been lowered by 10.8%, was approximately 12%, it is effectively a reversal of most of the previous price hike.
The decline in international gold prices is cited as the background for the price cut. According to the World Gold Council (WGC), international gold prices fell 8.5% from the previous month to $4,176 per troy ounce at the end of last month. During the same period, U.S. 10-year Treasury yields rose by 0.53 percentage points, and the dollar index increased by 2%. Rising interest rates reduced the relative investment appeal of gold, which pays no interest, while a stronger dollar also contributed to downward pressure on gold prices.
However, it has not been confirmed whether the decline in gold prices was the direct cause of this price cut. Boucheron stated regarding this adjustment, "It is simply part of our global pricing policy; we cannot explain any other reasons."
Since the luxury industry has historically improved profitability through price increases, this price cut is also being evaluated as unusual. The luxury sector has aimed to stimulate consumer psychology that prices will continue to rise, thereby encouraging earlier purchases. Given that the price cuts were centered on the Quatre collection, which had seen significant price hikes in July, interpretations also suggest that consumer burden was taken into consideration.
This year, major luxury brands have also implemented price increases. Cartier raised the price of the Love Ring Classic by 7.8% and the Love Bracelet Medium by 8.2% last January. Van Cleef & Arpels also increased the prices of some products, including Alhambra and Perlée, by approximately 5% last March.
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