Revenge shopping drives Louis Vuitton, Christian Dior Korea profit surge

(Source: Korea Bizwire)

Louis Vuitton Korea has said its net income rose 68.9 per cent last year, boosted by the “revenge shopping” trend post-pandemic, and price increases.

Louis Vuitton Korea, the Korean arm of the French luxury house, logged a net income of US$287.4 million last year, the company said in a regulatory filing.

Operating profit rose 38.3 per cent to $317 million on sales up 15.2 per cent to $1.28 billion.

The French luxury empire’s house brand Christian Dior also enjoyed a similar boom in South Korea.

Christian Dior Couture Korea’s net income swelled 54.8 per cent on-year to $184 million last year, while its operating profit and sales in South Korea both rose over 50 per cent on-year, according to its regulatory filing.

The two luxury brands’ strong performance in Asia’s fourth-largest economy can be attributed to “revenge shopping,” which refers to consumers seeking comfort by purchasing goods while social activities and travel were restricted during the pandemic.

Last year, South Koreans were the world’s biggest spenders on personal luxury goods, according to Morgan Stanley, with the nation’s per capita spending amounting to $325.

This far exceeds the $55 and $280 per capita spending by Chinese and Americans, respectively.

A series of price increases by LVMH in South Korea also helped boost profitability.

Louis Vuitton increased product prices twice last year, on top of its fifth price rise carried out in South Korea in 2021. Dior also increased prices twice last year.

Last month, LVMH Chairman and CEO Bernard Arnault visited South Korea with his daughter Delphine Arnault, the chairman and CEO of Christian Dior, and discussed potential partnerships with top executives of local retail companies.

This story was originally published by Yonhap, via Korea Bizwire.

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