Expensive luxury brands are racking up strong sales in South Korea, despite the coronavirus outbreak.
Consumers, denied overseas travel, have resorted to spending on luxury goods instead, gaining popularity among the MZ Generation (millennials and Generation Z) in particular.
The Financial Supervisory Service reported that Christian Dior Couture Korea Co, the South Korean branch of French luxury brand Christian Dior, generated operating profits of 104.7 billion won (US$93.6 million) last year, 2.4 times more than the previous year.
The company reported 328.5 billion won in sales and 77.7 billion won in net income, up by 75.8 percent and 253.4 percent, respectively.
Moncler Korea, the operator of the puffer jacket brand Moncler, generated 31.7 billion won in operating profits and 23.1 billion won in net income last year, up by 57.4 percent and 59 percent from the previous year.
The Ministry of Trade, Industry, and Energy reported that last year’s luxury sales at major department stores jumped by more than 15 percent from the previous year.
Out of all products sold at department stores, only products from famous foreign brands and household goods saw a rise in sales.
There are other high-end brands, however, that failed to demonstrate better performance.
Ferragamo Korea, the South Korean branch for the luxury shoes brand Salvatore Ferragamo, reported 4.5 billion won in operating profits last year, a drop of more than 50 percent from the previous year.
The company generated 105.6 billion won in sales and 3.5 billion won in net income, dropping by 29.7 percent and 56.9 percent.