LVMH banks on Seoul as next luxury growth engine

What happened LVMH is accelerating its expansion in South Korea, positioning the country as a key growth hub amid softening luxury demand in China and the U.S. The French group plans to enlarge its two biggest fashion maisons — Louis Vuitton and Christian Dior — in Seoul’s Cheongdam district within the next few years. Dior’s revamped flagship could open as early as 2027 and is expected to include a permanent restaurant, while Tiffany & Co. is also planning a major new Seoul flagship that year. Bulgari, meanwhile, is reportedly scouting locations for its South Korean flagship as part of LVMH’s wider regional strategy. The expansion underscores South Korea’s rising importance to global luxury players. Louis Vuitton, Hermès, and Chanel collectively recorded close to 10% sales growth in the country last year, reaching $3.3 billion, according to government data. A mix of resilient domestic spending and rebounding tourism from China and Japan — supported by a weaker Korean won — has helped luxury sales stay buoyant even as global consumer sentiment cools. The Jing Take: Seoul shines amid global slowdown Tourist spending in South Korea rose 33% YoY to a record 9.26 trillion won ($6.6 billion) last year according to the Korea Herald. While China’s premium market contracted and U.S. price hikes tempered demand, Seoul has emerged as one of the few luxury bright spots in Asia. The Cheongdam and Apgujeong neighborhoods are now among the most competitive retail districts in the region, attracting a steady stream of new flagships and concept stores. LVMH’s move builds on earlier investments. Celine opened its first standalone boutique in Seoul late last year, while Fendi launched a flagship there in 2023. Rivals are following suit: Richemont opened a new Vacheron Constantin maison in June, combining retail with Korean art and exhibition spaces, and Hermès expanded and relocated its flagship in the capital in August. South Korea’s MZ generation South Korea’s luxury strength rests on both economic resilience and cultural influence. Despite global headwinds, the country continues to grow steadily, expanding by 5% to 10% each quarter, according to local department store data. Younger consumers, often referred to as the MZ generation (millennials and Gen Z), have become a major driving force. Morgan Stanley estimates that South Koreans spent $16.8 billion on personal luxury goods in 2022, with per capita spending of $325 — the world’s highest. For many young Koreans, luxury is closely tied to aesthetics, aspiration, and self-expression. In a society that prizes presentation and quality craftsmanship, owning high-end pieces from Hermès, Chanel, or Louis Vuitton is seen as a mark of taste rather than excess. Social media has amplified this sentiment, fueling trends like “Ditto” consumption, where consumers emulate their favorite influencers and idols. Luxury catching up with South Korea’s trends and digital speed The phenomenon speaks less to extravagance than to confidence — a generation comfortable blending global style with local sensibilities. Luxury houses have taken note, tailoring experiences to Korean consumers’ refined preferences and digital sophistication. Flagship openings increasingly double as cultural spaces, blending fashion, dining, and art in ways that resonate with Seoul’s cosmopolitan audience. For LVMH, deepening its footprint in South Korea offers both commercial and cultural dividends. The country’s mix of high-spending locals, design-forward youth, and growing tourism base positions it as an essential node in Asia’s evolving luxury landscape. The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.

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LVMH banks on Seoul as next luxury growth engine