South Korea emerges as key battleground for global luxury brands

The top luxury goods firms in the world, Moët Hennessy-Louis Vuitton (LVMH) and Kering Group, are battling it out with their flagship brands Louis Vuitton and Gucci at major tourist destinations throughout South Korea.

The competition is fierce: Gucci scheduled an exclusive presentation at Gyeongbokgung Palace next month, while Louis Vuitton booked out the Some Sevit floating islands in Seoul’s Han River for its first-ever pre-fall fashion display.

The pre-fall collection fashion show for Louis Vuitton is a significant occasion since it celebrates the formal debut of womenswear creative director Nicolas Ghesquière in Korea.

The next Gucci presentation is also noteworthy for its unexpected turns, since the event last year almost had to be postponed because of a fuss made over a hanbok photo shoot at the Blue House that a fashion magazine had instigated.

The event was again postponed after the Itaewon disaster, which occurred just before the new date. Gucci persevered with the Gyeongbokgung fashion show in spite of these failures, demonstrating the significance of Korea to the Kering Group, according to the luxury sector.

In Seodaemun-gu, Seoul, the French luxury label Dior also debuted its Autumn 2022 Women’s Collection in April. The 60th anniversary Asia Pacific fashion show for Dior held in 2007 in Seoul Olympic Park has been 15 years ago.

South Koreans spend the most on luxury items in the world, $325 (or around KRW 400,000) per person annually, according to U.S. investment firm Morgan Stanley.

Korea has become one of the most significant nations in the global luxury business as a result of the enormous influence Korean culture, or K-content, which fuels the Hallyu boom, has on the rest of Asia, including China.

A greater number of luxury brands are entering Korea directly as the domestic luxury market expands. After terminating its agreement with Shinsegae International in January, the French luxury brand Celine entered the Korean market directly.

Thom Browne, which was exclusively sold by Samsung C&T’s fashion division, will also enter the Korean market in July by establishing a Korean subsidiary, Thom Browne Korea.

LVMH, which owns Louis Vuitton, Dior, and Fendi, and Kering, which owns Gucci, Saint Laurent, and Bottega Veneta, are traditional rivals in the luxury market, ranking first and second in sales.