Lotte desperate to grab LVMH Chairman Arnault's heart

The Korea Times

The Korea Times

Business

Tue, September 26, 2023 | 08:52

Companies

Lotte desperate to win LVMH Chairman Arnault's heart

Posted : 2023-03-21 16:49

Updated : 2023-03-22 15:03

Lotte Group Chairman Shin Dong-bin, left, walks with LVMH Chairman Bernard Arnault at Lotte Avenuel Mall in Jamsil, southern Seoul, Monday. Courtesy of Korea Times reader

By Kim Jae-heun

LVMH Moet Hennessy Louis Vuitton Chairman Bernard Arnault is a global fashion magnate who owns dozens of world-class luxury brands such as Louis Vuitton, Dior, Tiffany & Co. and Dom Perignon.

The chairman made regular visits to Korea between 2016 and 2019 until the pandemic. These visits have always drawn attention among local fashion firms' chiefs. A good opportunity arose for them to invite Arnault to their department stores and discuss business on the spot.

In 2010, Hotel Shilla CEO Lee Boo-jin went to Incheon International Airport herself to greet Arnault and successfully convinced him to open a Louis Vuitton boutique at her duty free shop ― beating out rival Lotte Duty Free.

This time, Lotte stood in the front of the line to meet Arnault. On Monday, he visited Lotte Avenuel Mall in southern Seoul's Jamsil.

Lotte Group Chairman Shin Dong-bin, accompanied by Lotte Shopping CEO Kim Sang-hyun and Lotte Department Store CEO Jung Jun-ho, welcomed the French chairman and took him on a tour around the luxury department store and duty free shop in the mall.

"It is unknown what Shin discussed with Arnault, but Shin probably came out because of his duty free business. He wanted to appeal to Arnault while he is in Korea," a local retail firm official said.

Lotte needs to expand luxury boutiques at its department stores as Lotte Duty Free, the country's No.1 duty free shop, has failed to enter Incheon International Airport recently.

Shin is also predicted to have come out himself and greeted Arnault to build the relationship, which could help his retail affiliate's partnership with LVMH in the luxury business sector.

"It is already meaningful only by inviting the chairman of the world's largest luxury firm to Lotte Avenuel Mall. Shin probably wanted to take this chance as a stepping stone in increasing the number of French luxury brand boutiques at his department stores on the outskirts of Seoul," the official added.

Lotte Department Store declined to comment.

Lotte is the country's largest retailer but its department stores operate fewer luxury brand stores compared to its competitors. LVMH is well-known for not allowing its luxury brand to open a store if the destination does not satisfy certain conditions such as sales volume, public profile and location.

jhkim@koreatimes.co.kr