ID :
207482
Fri, 09/16/2011 - 06:34
Auther :
Shortlink :
https://oananews.org//node/207482
The shortlink copeid
European luxury brands see sales hike after FTA
SEOUL (Yonhap) - Sales of European luxury goods in South Korea have increased sharply since the implementation of the country's free trade deal with the European Union (EU), industry sources said Friday.
The Korea-EU FTA, which took effect in July, calls for eliminating or phasing out tariffs on most Korean and European goods, including fashion items within three years.
According to the sources, Louis Vuitton, the most popular designer brand in South Korea, owned by LVMH Moet Hennessy Louis Vuitton SA, sold 91.2 billion won (US$82.1 million) worth of goods between July 1 and Sept. 14, up 16.9 percent from a year earlier.
During the same period, French brand Chanel posted 44 billion won in sales, up 14.6 percent, and sales of Hermes rose 11.4 percent to 15.6 billion won, said the sources.
Another French designer brand Gucci, which seems to have lost popularity here, reported 36.4 billion won in sales, up a mere 1.9 percent, they added.
Market experts said that the strong sales growth is attributable to the FTA that led the brands to cut prices and to a nationwide boom for European labels.
Hermes lowered prices of its bags and clothes by an average of 5.6 percent and Chanel gave a 5 percent price cut after the free trade deal took effect.
The European brands saw a drastic increase in sales in the first half of the year despite price hikes before the FTA. Louis Vuitton registered 242.4 billion won in sales in the first six months of 2011, up 31.2 percent from the same period last year, while Chanel's first half sales soared 54.8 percent on-year to 130 billion won.
"The FTA pulled down the prices of the goods a little bit and these brands are gaining popularity here in South Korea," said an official from a department store. "Louis Vuitton's rapid growth contrasts with Gucci's lackluster performance."
The Korea-EU FTA, which took effect in July, calls for eliminating or phasing out tariffs on most Korean and European goods, including fashion items within three years.
According to the sources, Louis Vuitton, the most popular designer brand in South Korea, owned by LVMH Moet Hennessy Louis Vuitton SA, sold 91.2 billion won (US$82.1 million) worth of goods between July 1 and Sept. 14, up 16.9 percent from a year earlier.
During the same period, French brand Chanel posted 44 billion won in sales, up 14.6 percent, and sales of Hermes rose 11.4 percent to 15.6 billion won, said the sources.
Another French designer brand Gucci, which seems to have lost popularity here, reported 36.4 billion won in sales, up a mere 1.9 percent, they added.
Market experts said that the strong sales growth is attributable to the FTA that led the brands to cut prices and to a nationwide boom for European labels.
Hermes lowered prices of its bags and clothes by an average of 5.6 percent and Chanel gave a 5 percent price cut after the free trade deal took effect.
The European brands saw a drastic increase in sales in the first half of the year despite price hikes before the FTA. Louis Vuitton registered 242.4 billion won in sales in the first six months of 2011, up 31.2 percent from the same period last year, while Chanel's first half sales soared 54.8 percent on-year to 130 billion won.
"The FTA pulled down the prices of the goods a little bit and these brands are gaining popularity here in South Korea," said an official from a department store. "Louis Vuitton's rapid growth contrasts with Gucci's lackluster performance."
