Despite Price Hikes, Open-Run Rush Continues... Chanel Surpasses 1 Trillion Won in Sales in Korea Last Year

by Jeon Jinyoung

Published 15 Apr.2022 07:00(KST)

[Image source=Yonhap News]

[Asia Economy Reporter Jeon Jinyoung] The French luxury brand Chanel recorded sales of 1 trillion KRW in the Korean market last year. Revenge consumption following COVID-19 and consecutive price increases appear to have driven the sales.

According to the Financial Supervisory Service's electronic disclosure system on the 15th, Chanel Korea's sales last year were 1.2237 trillion KRW, a 31.6% increase compared to the previous year (929.5 billion KRW).

Operating profit rose 66.9% from 149.1 billion KRW the previous year to 248.9 billion KRW, and net profit also jumped 67.8% from 106.8 billion KRW to 179.3 billion KRW.

Chanel's domestic business sales increased by 37%, improving overall performance despite a 30% decline in duty-free business sales due to the impact of COVID-19. Revenge consumption sentiment seems to have driven the sales.

John Hwang, Chief Financial Officer of Chanel Korea, stated, "2021 was a year in which Chanel Korea continuously strengthened its strong position," adding, "We invested in new boutiques, including Incheon Airport, to further solidify our presence."

Along with Chanel, Hermes and Louis Vuitton, known as the 'EruSha' trio of luxury brands, also saw increased domestic sales last year. Louis Vuitton Korea, which announced its results earlier, recorded sales of 1.4681 trillion KRW last year, up 40.2%, and operating profit nearly doubled (98.7%) to 301.9 billion KRW.

Hermes Korea also achieved sales of 527.5 billion KRW last year. Operating profit and net profit increased by 27.8% and 27.2%, respectively, reaching 170.5 billion KRW and 125.3 billion KRW.