SEOUL, May 3 (Korea Bizwire) — Luxury brands are exploring various ways to prevent the deterioration of their brand value caused by resellers.
The Rolex store at the main branch of the Lotte department store introduced a 10-day waiting system last month, according to industry sources.
Under this system, customers with phone numbers ending in 6, for example, can join a waiting list only on the 6th, 16th and 26th of each month.
Rolex stores at Hyundai Department Store’s Apgujeong and Trade Center outlets also introduced a telephone reservation system earlier this year.
Telephone reservations begin at store opening time, and the daily waiting list is limited to 40 people. The frequency of reservation available for each person is also limited to once every 15 days.
Chanel also limited the number of popular items such as classic flap bags and Coco Handle lines that a particular customer can purchase to one per year and small leather goods to two per year.
The main reason why luxury brands implement such policies is to prevent the deterioration of brand image caused by resellers who buy popular items simply to resell them at a higher price.
Chanel raised its prices four times last year, but due to the free run phenomenon, in which people wait outside its stores before opening hours, its brand image has deteriorated, driving resale prices lower than original department store prices.
The prevalence of revenge spending caught media attention last year as long lines of young shoppers formed almost daily outside Chanel stores in Seoul, hours before the store opened.
Ashley Song ([email protected])