Published : Jan. 6, 2015 - 21:03
Global cosmetics and fashion player Estee Lauder Group increased the prices of its duty-free products by as much as 14.5 percent, company officials said Tuesday.
The price hike affected the group’s popular brands including Estee Lauder, Clinique, Bobbi Brown, Origins, Lab Series and Aramis.
“The price change may have been influenced by a number of factors, such as the exchange rate and marketing fees, which were one of the biggest factors this time,” an official from Estee Lauder’s duty-free team said, declining to be named.
The biggest price jumps were for Clinique, a skincare product manufacturer, which raised the price of its popular Moisture Surge Extended Thirst Relief by 14.5 percent, from $55 to $63.
Price hikes for products of Bobbi Brown, Estee Lauder and Origins range from 1.4 percent to 5 percent.
Analysts said the price hike was being seen as an attempt to offset slowing sales in the country, while some imported cosmetic brands such as Lancome, SK-II and Kiehl were choosing to lower their prices to sell more.
Earlier last year, foreign makeup brands raised the prices of their products one after another despite the drop in exchange rates.
Public criticism was leveled that regardless of changes in foreign exchange rates, the price hike had become an annual event for beauty goods manufacturers.
Meanwhile, local cosmetics brands including The Face Shop, MISSHA, Nature Republic, Tony Moly and Etude House increased the prices of their products sold at duty-free stores last month.
By Suk Gee-hyun (monicasuk@heraldcorp.com)