Chanel to open after-sales service center in Seoul

French luxury label Chanel is planning to open a dedicated after-sales service center in South Korea, one of the world’s largest markets for high-end goods, according to industry sources on Wednesday.

The Seoul post-sales service center, named Chanel & moi – Les Ateliers, will be the fifth after opening one center each in Hong Kong, London, Tokyo and Osaka. Chanel will open the sixth center for product care and repairs in New York City, sources said.   

While the specific opening schedule and location are yet to be confirmed, industry insiders forecast the center will be inside the same seven-story building that houses Chanel’s flagship store. Chanel’s Korean affiliate purchased the building site in the upscale Cheongdam area of Gangnam District for 83.1 billion won ($61.5 million) in 2013.

Chanel's headquarters recommends that its post-sales service center be located inside a major boutique, and if that is not possible, it should be around the boutique. The flagship store building in Cheongdam seems to be at the top of the list as it has space for the center, a fashion industry source said.

The after-sales service center is expected to significantly improve product repairs for Korean customers as many of them send their Chanel products overseas and wait months for service. Some shoppers visit luxury goods repair shops and are charged exorbitant prices for repairs.

With the care from Chanel's repair center, the service per item will be made at more reasonable prices within two to three weeks, sources said.

Through the services, Chanel looks to strengthen its warranty benefits and increase brand loyalty in Korea. According to Morgan Stanley, Koreans spent an estimated $325 on high-end goods on average in 2022, the highest amount per capita in the world.

Chanel also aims to reduce customer backlash from frequent price hikes, the sources added.

The luxury brand raised the prices of its popular handbags by 6-7% last month, including the price of medium-sized Classic Flap, which increased by 7.4% to 15.6 million won and large-sized Classic Flap which jumped 6.9% to 16.8 million won. The brand raised its signature product prices four times in 2022 and twice last year.

During an interview with fashion trade journal Women's Wear Daily last month, Bruno Pavlovsky, president of fashion at Chanel, said the brand is opening more dedicated spaces for its Chanel & moi program and each bag or wallet on chain comes with a five-year warranty.

Chanel plans to open dedicated after-sales service centers in virtually all the big cities where it has a presence, he added.

Write to Hye-Won An at anhw@hankyung.com
Jihyun Kim edited this article.