[Luxury World] Louis Vuitton Loses Top Spot to Chanel... Why the Brand Is Focusing on Korea

Louis Vuitton Dosan Store Reopens After Renovation
Highlighting the Iconic Monogram to Reinforce Brand Value
Expanding Korean Market Touchpoints with Cosmetics Line and Permanent Restaurant
Korea Ranks No. 1 in Per Capita Luxury Spending
"Demand Remains Steady Despite Economic Downturn"

Interior view of the Louis Vuitton Dosan store. Designed with the concept of a hotel's interior facilities. Photo by Jae-Hyun Park

The Louis Vuitton Dosan store, located near Dosan Park in Gangnam-gu, Seoul-a district dense with luxury brands-has reopened after a major renovation. This space, which prominently features the iconic Louis Vuitton Monogram, has been refurbished to mark the 130th anniversary of the Monogram’s launch. From its exterior reminiscent of a European hotel, to staff dressed as hoteliers and a red-carpeted lobby, the atmosphere evokes the feeling of embarking on a journey.

The store showcases signature Monogram handbags such as the Keepall, Speedy, Alma, Neverfull, and Noe, immediately capturing visitors’ attention. The first-floor lobby serves as a concierge area, where artisans are stationed to provide services such as repairs and painting. On the second-floor balcony, the Alma bag is on display, while in the gym-themed space, a Monogram Neverfull bag-designed to withstand up to 100 kilograms-is exhibited.

The third-floor bar area has been transformed into a caf? where guests can enjoy champagne and coffee. Visitors can admire the Noe Monogram bag, originally created to carry champagne, while sampling caf? offerings such as a chocolate biscuit-shaped latte and a velvet white chocolate drink, both featuring the Monogram design. The Monogram 130th Anniversary pop-up store is being presented exclusively in New York, Shanghai, and Seoul.

Cafe menu items that can be enjoyed in a bar space. Utilized the Louis Vuitton Monogram design. Photo by Jae-Hyun Park

This renewal of the Louis Vuitton Dosan store draws attention as it comes at a time when the global luxury market is experiencing an overall downturn. According to a luxury market report released by global consulting firm Bain & Company in November of last year, the global personal luxury goods market was estimated at approximately 606 trillion won (358 billion euros), representing a decrease of about 2% compared to the previous year. As the economic downturn and persistent inflation have led more middle-class consumers to tighten their spending, the market has contracted for two consecutive years, including 2024.

Louis Vuitton is a luxury brand under LVMH, the world’s largest luxury group. LVMH also owns numerous other prestigious brands, including Dior, Celine, Fendi, and Givenchy. Among these, Louis Vuitton is considered the flagship brand, accounting for about a quarter of the group’s total revenue. Notably, it is also recognized as the group’s “cash cow,” generating over 50% of total operating profit.

However, the global market environment has recently shifted. The slowdown in luxury demand has led to a marked decline in growth rates. While Louis Vuitton’s sales maintained strong growth during the boom years of 2020 to 2022, the brand shifted to negative growth starting in 2023. As competitor Chanel has closed the gap with Louis Vuitton, the brand’s once unchallenged dominance is now under threat. According to UK-based brand valuation consultancy Brand Finance, Chanel’s brand value last year reached 37.9 billion dollars (about 55 trillion won), surpassing Louis Vuitton, which had long held the top spot in the fashion sector with a value of 32.9 billion dollars.

The same trend is evident in the Korean market. According to the Financial Supervisory Service’s electronic disclosure system, Louis Vuitton Korea’s sales surpassed Chanel Korea’s until 2022, but from 2023, Chanel took the top spot. In 2024, Chanel Korea’s sales reached 1.8445 trillion won, ahead of Louis Vuitton Korea’s 1.7484 trillion won. However, operating profit for Chanel Korea was 269.4 billion won, lower than Louis Vuitton Korea’s 389.1 billion won.

Korea is considered a strategically important market. Despite the global economic downturn, demand for luxury goods remains robust, and purchasing power is exceptionally high relative to the population. According to Morgan Stanley, annual per capita luxury spending by Koreans is about 430,000 won (325 dollars), ranking first in the world ahead of the United States and China. In fact, Louis Vuitton Korea’s 2024 sales reached a record high of 1.7484 trillion won.

For this reason, Louis Vuitton is expanding its touchpoints with Korean consumers. Last year, Louis Vuitton opened “Louis Vuitton Visionary Journey Seoul,” the world’s largest experiential space, at the main branch of Shinsegae Department Store. This space is designed to provide an immersive experience of Louis Vuitton’s history, which began with travel trunks. The renewal of the Dosan store, led by the Monogram, is an extension of this strategy. Rather than focusing solely on short-term sales growth, the brand is aiming to reinforce its history and value in order to sustain strong demand even at high price points.

Louis Vuitton Visionary Seoul. Provided by Louis Vuitton

Recently, Louis Vuitton has been expanding its business into cosmetics and food and beverage (F&B). In the second half of last year, the brand launched its first cosmetics line, “La Beaut? Louis Vuitton,” debuting it in Korea. By setting higher prices than other luxury brands like Herm?s and Gucci, which have also entered the beauty market, Louis Vuitton adopted the motto “cosmetics to pass down to your daughter.”

In September of last year, Louis Vuitton opened its first permanent restaurant, “Le Caf? Louis Vuitton,” in Cheongdam-dong, Gangnam-gu, Seoul, where Gucci and Dior had previously opened restaurants. This move is seen as an effort to secure future VIP customers by offering “small luxury” experiences that are more accessible to younger generations who may find it burdensome to purchase bags costing several million won.

An industry insider commented, “As luxury consumption contracts, luxury brands are focusing more on heritage and storytelling rather than price competition. Louis Vuitton’s strategy in Korea is also centered on enhancing long-term brand value rather than short-term performance.”