Booming sales of European luxury goods in Korea, following trade agreement

Sales of European luxury brands have been booming in Korea following a free trade pact between Korea and the EU which took effect on July 1st.

French luxury brand Louis Vuitton registered sales of U$82.6 million between July 1 and Sept. 14, up 16.9 percent compared to the same period last year. Chanel sales increased 14.6 percent to US$ 42 million during the same period, while Hermes saw a 11.4 percent increase with sales rising to US$14 million

Italian luxury fashion house Gucci recorded US$ 27 million in sales with a slight 1.9 percent increase.

Despite some price cuts following the FTA, the prices of European luxury goods have increased compared to last year. Louis Vuitton had raised product prices twice in the first half of the year. Gucci has refused to lower prices as its products are shipped in Switzerland, out of the European Union. Hermes decreased prices an average of 5 percent. Chanel also lowered its prices 5 percent after a 25 percent increase in May.