Despite the worst recession ever, ‘E Ru Sha’ sold 4 trillion won in Korea last year

[이데일리 정병묵 기자] Last year, despite the unprecedented recession, the top-notch luxury brands ‘E Lu Sha (Hermes, Louis Vuitton, Chanel)’ showed record-high performance.

Hyundai Department Store Apgujeong branch Chanel store. (Photo = Reporter Baek Joo-ah)

Chanel Korea announced on the 14th through an audit report that last year’s sales increased by 30.0% year-on-year to KRW 1,591.3 billion. Operating profit was KRW 412.9 billion, a whopping 65.9% increase from the previous year.

Hermes and Louis Vuitton, which had previously released audit reports, also recorded “earnings surprises.” Hermes Korea recorded sales of KRW 650.2 billion (23.3%↑) and operating profit of KRW 210.5 billion (23.4%↑), while Louis Vuitton Korea recorded sales of KRW 1,692.2 billion (15.3%↑) and operating profit of KRW 417.7 billion (38.4%↑). .

The combined sales of the three companies stand at 3,933.7 billion won, approaching 4 trillion won. In addition, the average operating margin of the three companies reached 28%. Last year, Hermes Korea’s operating margin was 32.4%, Louis Vuitton Korea’s 24.6%, and Chanel Korea’s 26.5%.

In addition to ‘Erusha’, all the top luxury brands performed well. Christian Dior Couture Korea, which sells ‘Dior’, recorded sales of KRW 930.5 billion, an annual increase of 51.6%, and was on the verge of breaking through the KRW 1 trillion mark. In addition, △Prada Korea KRW 421.3 billion (55.2%↑) △Tiffany Korea KRW 359 billion (24.6%↑) △Korea Rolex (Rolex) KRW 299.3 billion (19.5%↑) also showed an upward trend.

2022 sales growth rate of luxury brand Korean branches[그래픽=이데일리 김일환 기자]

Last year, consumer sentiment shrank due to a omnidirectional rise in prices, high interest rates, and high exchange rates, but the preference for premium luxury goods grew even hotter. According to the National Statistical Office, the consumer price index in 2022 increased by 5.1% from the previous year to 107.71, recording the highest level since 1998 (7.5%↑) during the Asian financial crisis.

As a result, it is interpreted that while a significant number of consumers entered a “tightening mode” due to a decrease in disposable income (income that allows them to freely consume and save), those who are looking for luxury goods continue to find them.

Luxury brands continued to raise prices last year as well. Criticism was also raised that luxury brands are raising prices in line with the rise in the won-dollar exchange rate in order to maintain their profit margins.