By Kim Da-ye
Louis Vuitton is known to not be so customer-friendly. The brand allows customers to buy only two items per visit, forces customers to line up in front of the stores and never goes on sale.
Yet many Korean consumers still worship the French luxury brand. The “Speedy” handbag was so popular that it was called a “three-second” bag because one could spot the model on the street every three seconds. Many consumers here are willing to spend over a million won for a bag made of printed canvas and trimmed with leather.
So when the brand’s pride and consumers’ devotion met, born was a love affair which industry sources call “very advantageous” to the French brand.
Louis Vuitton led by Chairman Bernard Arnault and Hotel Shilla, a Samsung Group affiliate led by Lee Kun-hee’s eldest daughter, Lee Boo-jin, agreed in November that they will together open the world’s first airport duty-free outlet for the label at Incheon International Airport.
The store will be located between Gate 27 and Gate 28, right in the center of the airport’s passenger terminal on the third floor. Though it is yet to be confirmed, the space is expected to be as large as 595 square meters.
The problem is that the space is now occupied by some 200 seats for passengers waiting for their flights ― many of which are likely to be moved elsewhere once the construction for the outlet begins.
Does Incheon airport need another shop at the expense of public interest? Or does Louis Vuitton have to have a shop located right there, altering the original interior design of the airport?
One industry source told The Korea Times on condition of anonymity that the luxury brand wouldn’t have opened its world’s first airport outlet at Incheon if it hadn’t been given such a great location.
The two bidders, Hotel Shilla and Lotte Hotel, initially suggested places that are slightly away from the center but are equal to or larger than the chosen space. For Louis Vuitton, being right at the center seemed to have mattered, the industry source said.
At the end of the day, LVMH Moet Hennessy Louis Vuitton, the parent company of Louis Vuitton, wielded the enormous power it enjoys globally.
The luxury giant owns prestigious design houses such as Fendi, Givenchy, Celine and Marc Jacobs as well as wines and spirits brands including Moet et Chandon and Veuve Clicquot.
Louis Vuitton wasn’t directly involved in the airport deal because in Korea, foreign brands open their shops under partnership with local duty free retailers. For the French brand’s outlet, Hotel Shilla is now negotiating with Incheon International Airport Corporation regarding specific terms including the rent and the duration of the lease.
The terms are expected to be so overly favorable to Louis Vuitton that the Board of Audit and Inspection of Korea looked into them. Industry sources also hinted to this reporter that some luxury brands as well known as Louis Vuitton aren’t very happy that they are, in consequence, being discriminated against. One big name even considered withdrawing its outlet from Incheon airport, according to an industry source.
In the cut-throat world of the luxury fashion business, getting the best deal is a priority, and this deal involves no foul play because Louis Vuitton just chose the best that was offered.
But in a society where the win-win approach became an imperative virtue for businesses, the Louis Vuitton deal leaves the impression that pride came before many other important values.
The press office of the French brand declined to comment for now.