V (BTS) helps Celine Korea increase profits by 591%

According to KoreaJooAngDaily, the four most popular luxury brands in South Korea - Hermès, Chanel, Louis Vuitton and Dior - saw operating profits decline by 2023.

However, Celine achieved a whopping 591% profit growth thanks to the brand's growing appeal to young people, affordable prices and the attraction of K-pop stars as ambassadors.

The brand owned by luxury conglomerate LVMH has a growing presence in the Korean market as big K-pop names like Lisa (Blackpink) and V (BTS) have been appointed as brand ambassadors.

Celine has ambassadors who are top Kpop stars. Photo: Instagram

Celine Korea's operating profit rose to 17 billion won ($12.4 million) in 2023 from 2.5 billion won the previous year, while its revenue increased sixfold to 307.2 billion won in 2023, up 513.2% from 50.1 billion won in 2022.

In contrast, the total operating profit of the four brands Hermès, Chanel, Louis Vuitton and Dior last year was 1.1 trillion won, down 19% from the previous year.

Celine terminated its contract with Shinsegae International and established Celine Korea - a subsidiary that directly entered the Korean market early last year.

Shinsegae International has been importing and distributing the brand's products since 2012. Direct entry into the Korean market allows the overseas luxury brand to increase its profit margins, as it does not have to work with distributors.

Celine's products are increasingly popular among young people, with most customers in their 20s and 30s, a luxury goods importer said. The trend is so strong that even customers in their 50s, 60s and 70s are embracing them.

Influencers and Kpop stars regularly endorse the products, giving the French fashion house a trendy image.

In addition, Celine products are relatively affordable compared to the four luxury brands mentioned above, making them more accessible to the public. This has made Celine stores one of the most popular stores in Korea today.

V (BTS) has a significant impact on Celine's profits. Photo: Naver

In 2023, V (Kim Taehyung) was chosen as Celine's newest global ambassador and his promotional activities with the brand have been a hit.

According to Lefty - a marketing analytics platform, in her first year in the new role, V quickly became Celine's best-performing ambassador.

In just 10 months, from March to December 2023, V generated $274 million in earned media value for Celine (through Instagram post engagements). This is the highest media value Celine has ever received in a year from any of their ambassadors.

In addition, V was also ranked 3rd by Lefty in the list of most influential fashion stars in 2023, despite his absence from international fashion weeks and other major fashion events.

V's activities with Celine will continue even after he has to fulfill his military service. Celine is still running a global campaign, with V's billboards in major cities in China and South Korea from December 2023 to January 2024.

V also appeared on the cover of Harper's Bazaar Korea's February 2024 issue, and had a special Valentine's Day photoshoot for W Korea released on February 14 this year. Both of these magazines were prepared before his enlistment.

After Celine appointed Danielle (NewJeans) as its new global ambassador in March this year, it seems that Lisa (Blackpink) has ended her contract. Currently, V is Celine's most influential and attractive ambassador globally.

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