Hermes, Louis Vuitton, and Chanel achieved sales of 4.5 trillion won even amid the recession thanks to Koreans' preference for branded products - Korean media

In the past, the branded goods market saw a surge in demand during the COVID-19 pandemic, but despite the industry's assessment that the bubble would burst after the pandemic, three major brands (Elle,
Brands such as Metz, Louis Vuitton and Chanel recorded record sales in Korea last year, which is said to be a sign of a polarization of consumer demand for branded goods.
According to the audit reports released by each company on the 12th, Hermes, Louis Vuitton and Chanel's total sales in South Korea last year were 4.5573 trillion yen.
The figure was 4.1521 trillion won (US$4.2 billion) in the previous year, up 9.76% from the previous year's 4.1521 trillion won (US$4.2 billion).
Hermes' sales in South Korea last year were 964.3 billion won (about 97.4 billion yen).
The company's operating profit for the same period increased by 13.1% from 235.7 billion won (US$237 million) to 266.7 billion won (US$256 million).
Louis Vuitton's sales in South Korea last year reached 1.7484 trillion won (US$1.6 billion), up 5.9% from 1.6511 trillion won (US$1.6 billion) the previous year.
During the same period, operating profit increased 35.7%, from 286.7 billion won (US$277 million) to 389.1 billion won (US$366 million).
Chanel's sales in South Korea last year were 1.8446 trillion won (about 17.6 billion yen), down from 1.7038 trillion won the previous year.
This represents an 8.26% increase from 272.1 billion won (US$1.6 billion) in fiscal 2018. Operating profit for the same period fell slightly from 272.1 billion won (US$2.5 billion) to 269.5 billion won (US$2.5 billion).
Industry sources point to polarization as the reason why Hermes, Louis Vuitton and Chanel achieved record sales despite the general downturn in the luxury goods industry.
This means that the demand for branded goods is concentrated only in the top brands. In fact, brands such as Ferragamo and Fendi performed poorly in the Korean domestic market last year.
Ferragamo recorded sales of 85.8 billion won (US$80 million) in Korea last year, down 12.7% from the previous year. Operating profit for the same period was 2.52 billion won.
Fendi's sales in Korea last year were 118.8 billion won (US$110 million), down slightly from 1.0 million won (US$2.54 million) to 2.51 billion won (US$2.53 million).
This is a 21.9% decrease from the previous year's 152.2 billion won (approximately 15.3 billion yen). On the other hand, demand for high-end brands such as Hermes, Louis Vuitton, and Chanel has not declined.
As a result, overseas headquarters are also expected to make considerable profits. Last year, Louis Vuitton Korea paid an annual dividend of 117 billion won (US$117 million) and an interim dividend of 10.5 billion won (US$100 million) to its French headquarters.
10 billion won (US$99.9 million) in dividends, totaling 217 billion won (US$219.9 million). Hermes Korea sent 195 billion won (US$197.9 million) in dividends. Chanel Korea sent 1
The company has set a year-end dividend of 30 billion won (approximately 13.1 billion yen).