【South Korea】”Prices Keep Rising”… Department Stores’ Focus on ‘Luxury’ Had Its Reasons

Despite successive price increases by luxury brands, the ‘luxury reinforcement’ strategy of domestic department stores is intensifying. As luxury sales continue to drive performance even during an economic downturn, they are moving to secure high-end customers.
According to industry sources on the 3rd, Shinsegae Department Store has completed the store renovations and new openings for global high-end luxury brands at its flagship store, which began in the first quarter. The renovations included Hermès, Louis Vuitton, Chanel, as well as luxury jewelry and watch brands like Cartier, Van Cleef & Arpels, Tiffany, and Rolex.
The newly unveiled ‘Louis Vuitton The Place Seoul Shinsegae The Reserve’ brings together Louis Vuitton’s fashion, watches & jewelry, beauty, restaurant, café, chocolate shop, gift & home collections, and a cultural experience space all in one location.
The Hermès store was established as the largest among domestic department stores. Cartier also opened a new boutique store, introducing all categories including high jewelry, watches, leather goods, and accessories. Early next year, new openings for Bulgari and the renovated Dior store are scheduled.

Shinsegae appears to be solidifying its dominance in the domestic luxury market, centered around its flagship and Gangnam stores. This is because the Gangnam store, already established as a ‘luxury holy land’, is enhancing its competitiveness based on its luxury lineup. The Gangnam store has surpassed 3 trillion won in cumulative sales this year.
The Gangnam store houses around 100 global luxury brands, including the top-tier houses referred to as ‘Herluche’ (Hermès, Louis Vuitton, Chanel), as well as Gucci, Dior, and Bottega Veneta. ‘Baby Dior’, the children’s version of Dior, also opened its first domestic store there.
The Gangnam store, which features the world’s four major luxury jewelry brands, is also seeing steady growth in luxury jewelry sales. Last year, it opened Louis Vuitton’s dedicated jewelry store, the third in the world and the first in Korea.
Recently, the luxury market has seen repeated price increases, increasing consumer burden, but demand remains. Cartier raised prices for some products in Korea by about 5% on the 1st. This is the fourth price increase this year. Van Cleef & Arpels, Tiffany & Co., and Bulgari also implemented their third price increases last month.