November 28, 2024

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Louis Vuitton Maison Seoul (Louis Vuitton)

Global luxury giant LVMH Group, the operator of multiple fashion and jewelry brands such as Louis Vuitton, Christian Dior and Tiffany & Co., logged record sales in South Korea last year, following a slew of price hikes for its flagship products amid the country's increased spending on luxury goods.

According to Louis Vuitton Korea, the Korean subsidiary of LVMH's Louis Vuitton, the company's sales last year recorded 1.69 trillion won ($1.2 billion), up 15 percent from 2021. The brand's operating profits also saw a significant increase, recording a 38 percent jump from the year before, with 417 billion won.

LVMH's Christian Dior Couture Korea's sales last year also increased by 52 percent on-year to 929 billion won, while its operating profits increased by 53 percent to 323 billion won.

The increase in sales and profits for LVMH's flagship brands in Korea follows a series of price hikes amid the burgeoning market for luxury goods in the country.

Over the course of 2021, Louis Vuitton Korea increased the price of its bestselling products such as the Alma BB handbag five times. The prices of its flagship products were raised twice more in 2022. As of April, the Alma BB is priced at 2.25 million won, a 29 percent increase from two years ago, when it was sold at 1.75 million won.

Christian Dior Couture Korea also raised prices for its major products last year. In January 2022, the luxury brand raised prices of major bag products such as the Lady Dior Bag, Dior Caro Bag and major jewelry products up to a maximum of 20 percent.

The constant price hikes follow Korea's steadfast demand for luxury goods.

As of last year, data from global research company Euromonitor showed that Korea's total luxury market was worth about $14.1 billion -- the seventh-largest in the world.

Furthermore, according to Morgan Stanley's report released in January, South Koreans' total spending on personal luxury goods per capita was recorded as the highest in the world, with one Korean spending an average of $325 on luxury goods.

The report stated that the constant demand for luxury products in Korea accompanies the nation's increase in purchasing power as well as locals' desire to flaunt their social standing with displays of wealth.

By Lee Yoon-seo (yoonseo.3348@heraldcorp.com)