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| People shop at Times Square in Yeongdeungpo-gu, western Seoul, in this 2018 file photo. / Korea Times file |
By Kim Jae-heun
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| Lotte Shopping CEO Kang Hee-tae |
Last weekend, customers wearing face masks queued in front of almost every luxury brands outlet, including Louis Vuitton, Gucci and Cartier, at Times Square in the Yeongdeung District of western Seoul.
A saleswoman said they were not allowing people in who weren't wearing face masks and everyone has to wash their hands in a sterilizing solution before entering the department store. She added that the virus had not affected sales, in fact, had become busier dealing with customers under strict guidelines due to the COVID-19 outbreak.
People stopped going to most department stores for fear of contracting the virus, and some had to temporarily close after people infected with COVID-19 visited them, causing a 15 percent plunge in sales. However, this is not the case for high-end stores.
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| Shinsegae CEO Jang Jae-young |
Galleria Department Store's sales in February fell 4 percent compared to that from a year ago, but luxury brands did well recording a 17 percent increase.
The situation at both Shinsegae and Hyundai department stores was no different ― they saw overall sales fall by 15.8 percent and 12.1 percent, respectively, but those of luxury goods were up 2.4 percent and 9.3 percent.
"People have a purchase plan for luxury goods and they don't often buy them impulsively, and so this frees us from the coronavirus effect. As they are little affected by external factors, sales of luxury goods will continue to grow," said a department store official.
This is seeing the brands take questionable steps in the domestic market.
Louis Vuitton recently increased the price of popular items from between 2 percent and 4 percent. The French brand has increased prices four times in a year-and-a-half ― the last time being in November 2019, just four months ago.
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| Hyundai Department Store CEO Chung Ji-sun |
Chanel increased the cost of its handbags by between 3 percent and 13 percent last October and is expected to add another markup soon.
Other luxury brands such as Prada and Dior have already increased their prices earlier this year.
Luxury brand goods cost more in Korea, according to a 2017 report by BNP Paribas, which noted that they are the second most expensive worldwide after China.
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