Following a period of robust growth during the height of the COVID-19 pandemic, sales of luxury fashion houses in Korea declined notably in 2023. 

Sales of renowned French label, Chanel declined last year after over 30 per cent growth in 2021 and 2022. The brand’s operating profits decreased by 34 per cent Y-o-Y to 272 billion won, a stark contrast to the robust profit surges of 2021 and 2022.

Similarly, Louis Vuitton witnessed negative growth in both sales and operating profits last year. Sales dipped by 2.4 per cent to 1.65 trillion won following impressive growth rates of 40 per cent and 15 per cent in 2021 and 2022, respectively. Operating profits plummeted by 31.4 per cent to 286.7 billion won in 2023, after surges of 98 per cent and 38 per cent in the previous two years.

Christian Dior, another esteemed French luxury brand, saw a 12 per cent increase in sales last year, surpassing the 1-trillion-won mark for the first time. However, the growth rate slowed compared to the 51 per cent surge in 2022.

Among the top five luxury brands in Korea, Hermes was the only company to register growth in both sales and operating profits last year. Sales reached 797.2 billion won, up by 22.7 per cent, with operating profits climbing by 12 percent to 235.7 billion won.

Celine and Rimowa also stood out with rapid growth last year. Celine Korea's annual sales skyrocketed by 513 per cent to reach 307.2 billion won, while Rimowa Korea saw a 77 per cent increase in sales to 63.5 billion won. Operating profits for both brands also experienced substantial growth.

Additionally, the source noted a significant decline in sales and profits for luxury accessories brands such as Rolex, Omega, and Bulgari last year.