Demand for luxury goods remains strong in Korea

With parts of the world still battling economic woes, the demand for luxury goods is still very much part for Korean consumers. The Korea Herald have reported that sales of Louis Vuitton, Chanel, Hermes, Prada and Gucci in Korea had jumped 17 per cent to 78.4 billion won ($US72.5 million) in July compared with a year earlier, according to industry figures on Monday.

Among them, the top three designer brands ― Louis Vuitton, Chanel and Hermes ― accounted for nearly 72 per cent with a combined 56.1 billion won of sales, which reflected a 13.5 per cent increase from a year ago.

In terms of revenues, Louis Vuitton was the hottest seller with 32.7 billion won after seeing a 10 per cent increase year-on-year, while sales of Chanel soared nearly 20 per cent to 17.6 billion won and Hermes by 16 per cent to 5.8 billion won. Italy’s Prada logged the highest revenue growth by growing 66.7 per cent with revenues reaching 9 billion won. Sales of Gucci climbed 9 per cent to 17.6 billion won.

Even with some of the luxury houses increasing their prices earlier this year, it hasn’t deterred shoppers.