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    South Korean Protests Continue To Decline In Many Brands.

    2016/11/24 15:37:00 38

    LuxuryFashionBrand

     Luxury brand

    Chong Wa Dae's political scandal has been brewing for almost a month now, and protests still linger on.

    The influx of Seoul in previous years

    Luxury goods

    The cards did not expect to be "sitting" - the enthusiasm of Chinese customers supporting half the sky for the Korean luxury market, while local customers were wait-and-see because of the unstable political situation.

    As the fourth largest economy in Asia, South Korea's GDP grew by only 2.7% in the third quarter, down from 3.3% in the previous quarter.

    Samsung, Hyundai, Hanjin Shipping three Korean Chaebol enterprises have multiple crises, and park Geun hye's violation of a request for change is nothing but worse.

    According to digital marketing company ContactLab data, the revenue of Burberry 10% is from Korea. The revenue recorded by Kai Yun group in the Korean market accounts for 6% of the total.

    As a department store luxury market, 80% of South Korea's revenue depends on Lotte, Hyundai and new world three big groups.

    Since last week, a large number of Korean retailers have entered the year-end discount season.

    33 shops in Lotte Department play the 30%-50% discount sign; modern department stores.

    fashion

    The brand discount is between 10%-50%, and some products in the new world are on sale for seventy percent off times.

    "Part of the department store near the protest center may be affected, and passenger traffic is down."

    "But it's not a serious blow to department stores and fashion industries," said Kim Tae-hyun, an analyst at LIG securities investment company.

     Luxury brand

    In fact, if there is no "girlfriends" incident, Korean department stores will be able to recover two words in 2016.

    Ministry of Trade (Industry & Energy) data show that sales of local mainstream stores increased by 11.4% in October compared with the same period last year.

    "This is because no bad things happen."

    Park Hee-jin, a retail analyst at Xin Han investment company, said: "last year, the MERS epidemic caused heavy losses to the Korean economy.

    Taking the time data as a denominator, it appears that the growth rate is obvious this year.

    But this growth actually came from a dose of strong medicine: South Korea began a month long shopping tour experience festival (Korea Festa) at the end of September.

    300 retailers including new century duty-free shops, Lotte Department stores and Galleria duty-free shops have joined the discount camp.

    A little attention will find that Chinese customers on national day trips are the number one target.

    The new world duty-free shop even played a red card, throwing heavy gold to invite net red to direct the tour.

    According to the data from the Korean Tourism Development Bureau, China accounts for half of the luxury revenue that foreign tourists contribute.

    Exchange rate plays an important role in this.

    ContactLab and Exane BNP Paribas of Paris, France jointly released this year's "luxury goods in Korea" (Luxury in).

    South Korea) report.

    Statistics show that almost all luxury goods companies have shops in South Korea.

    The top five brands of sales point are Ralph Lauren, Coach, Burberry, Armani and Ferragamo.

    Gross

    brand

    The first choice is Seoul.

    As of March this year, 60% (408) stores were located in the capital.

    Two months ago, LVMH group's brand Moynat opened fourth shops in Asia to The Shilla Seoul.

     Luxury brand

    The real focus of people's attention on this market is when Chanel held the early spring series in Seoul in May last year.

    Bruno, Pavlovsky, President of the brand global boutique department, explained to the group media: "the reason for coming here is not only the place of inspiration, but also business considerations.

    The Korean market is developing rapidly, and it is also a popular tourist destination for Chinese and Japanese tourists.

    This part of the income from Chinese tourists is not stable.

    In August of this year, the number of Chinese tourists who went to Korea in August decreased by 3.7% compared with the same period last month.

    And South Korea is different from Europe and still belongs to the conservative luxury market.

    Luxury goods in South Korea found that more than 80% of its consumption came from its residents.

    This means that the influence of the local political situation, economy and society on the luxury industry in Korea is greater.

    "The economic situation may be weak for a while."

    "At the same time, household debt is rising," said ANZ Research, Research Institute of Australia's new banking group, to The Diplomat website.

    The household debt of South Korea hit a record high of $1 trillion and 150 billion at the end of June this year due to a sharp increase in the proportion of housing population.

    At the same time, wage growth is still slow and real estate prices continue to rise.

    However, the Central Bank of Korea still voted in November to maintain the interest rate unchanged at 1.25%, saying that the family debt problem can not be solved by monetary policy alone.

    The crisis that swept the chaebol and the common people is continuing. Before the economy gets warmer, it is almost impossible to see the sale of luxury goods.

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