French luxury brands performed exceptionally well in the Korean market last year. The inhabitants of the Land of the Morning Calm have distinguished themselves as the world champions of luxury consumption.
The increased enthusiasm of Koreans for luxury in 2022 has particularly benefited the trio of Hermès, Louis Vuitton, Chanel, and to a lesser extent, Dior.
According to Korean JoongAngDaily, these four luxury companies generated 5 trillion won (3.45 billion euros) in 2022.
The strong growth in their revenues is all the more exceptional in that it is accompanied by an even more substantial increase in results.
In addition to the revenge shopping observed in the country during the pandemic, luxury brands have raised prices significantly without slowing down their business.
House by house, the increases were all in double digits. Louis Vuitton Korea’s sales increased by 15% to 1,692.3 billion won (1.1 billion euros), and its net profit by 69% to 380 billion won (0.26 billion euros).
Chanel Korea’s sales rose by 30% to 1591.3 billion won, while its net profit soared by 74% to 179.4 billion won (0.12 billion euros). At Christian Dior Couture Korea, sales increased by 52% to over 900 billion won (0.62 billion euros) and net profit by 53% to 323.7 billion won (0.22 billion euros). Finally, at Hermès, the evolution (+23% in both cases) of sales (to 650.2 billion won) (0.44 billion euros) and net profit (to 153.8 billion won) (0.1 billion euros) is also very appreciable, even if it is less spectacular than that of its competitors in terms of gains.
Featured photo : © Hermès