Hermès, Vuitton and Chanel were successful in South Korea in 2022

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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.

 

Double-digit increases

 

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.

 

In any case, these very positive results enabled the Korean subsidiaries to send very nice dividends to the companies’ headquarters last year. Chanel received 295 billion won (0.2 billion euros), Louis Vuitton 225.2 billion won (0.15 billion euros), and Hermès 75 billion won (0.05 billion euros).

 

World champions in luxury consumption

 

Generally speaking, South Koreans are now distinguishing themselves as the champions of luxury consumption.

 

According to a study by U.S. bank Morgan Stanley on global spending on luxury goods, South Korea’s total spending on luxury goods increased by 24% to $16.8 billion in 2022, or an average of $325 per capita. By comparison, the average per capita spending in China and the United States, the world’s top two luxury markets, is much lower, at $55 and $280, respectively.

 

Morgan Stanley analysts see in this Korean appetite for luxury the combination of increased purchasing power and desire to display social status.

 

Read also > Blackpink, the Korean group that gives air to luxury houses

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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.

 

Double-digit increases

 

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.

 

 

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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.

 

Double-digit increases

 

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.

 

 

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Sophie Michentef
Sophie Michentef has worked for more than 30 years in the professional press. For fifteen years, she managed the French and international editorial staff of the Journal du Textile. She now puts her press, textile, fashion, and luxury expertise at the service of newspapers, professional organizations, and companies.

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