LVMH expands in South Korea as luxury demand shifts from China and the US

LVMH is ramping up its growth in South Korea, with the luxury conglomerate looking for to diversify its world footprint amid geopolitical and financial uncertainties which are clouding the shopper spending outlook in the United States and China.

The group’s two largest style labels — Louis Vuitton and Christian Dior — are each planning to broaden their flagship maison-style shops in Seoul’s Cheongdam district inside the subsequent few years, based on folks accustomed to the matter who requested to not be recognized discussing non-public deliberations. Dior’s revamp could happen as early as 2027 and is predicted to characteristic a everlasting restaurant, based on the report.

LVMH Moët Hennessy Louis Vuitton SE’s watch and jewellery home Bulgari is reportedly eyeing its first flagship location in South Korea, as the group strengthens its regional presence. Meanwhile, Tiffany & Co. is predicted to open a flagship retailer in Seoul’s Cheongdam district in 2027, based on the identical sources.

A consultant for LVMH didn’t reply to a request for remark.

South Koreans’ enduring love for luxury, mixed with a resilient economic system and rising shopper confidence, has made the nation a shiny spot for prime business names amid an more and more unsure world retail panorama. Louis Vuitton, Hermès and Chanel posted virtually 10% progress in their mixed gross sales in the nation final 12 months, reaching $3.3 billion, based on authorities knowledge.

Beyond home customers, a surge in guests — primarily from China and Japan — together with the weaker gained, has additional boosted gross sales. Tourist spending rose by a few third to a report 9.26 trillion gained ($6.6 billion) final 12 months, based on the Korea Herald.

At the identical time, China’s premium items market shrank the most in a decade final 12 months, whereas U.S. import tariffs have prompted style homes to hike costs, probably driving rich customers to purchase luxury objects overseas. Even Japan, the place a weak yen had fueled a increase in luxury spending, is now exhibiting indicators of a slowdown.

LVMH, based by billionaire Bernard Arnault, has already been increasing its presence in South Korea. Celine opened its first boutique there in December final 12 months, and Fendi launched its first flagship in 2023.

Other luxury teams are additionally betting on the South Korean market. Cie Financière Richemont SA — which noticed its gross sales rise 20% in the nation for the monetary 12 months ended in March — opened a brand new flagship for Swiss watchmaker Vacheron Constantin in Seoul in June. The retailer options Korean artworks, a digital archive, a personal lounge, and a devoted house for exhibitions and occasions. Hermès additionally relocated and expanded its flagship in the capital, reopening the location in August.