Despite the prolonged market slump, French luxury house Hermes has been enjoying a stellar sales growth in South Korea over the years, thanks to a growing number of consumers seeking not just luxury but also exclusivity.

The annual sales of a Hermes store operating at a local department store chain surged around 25-30 percent a year since 2012, according to industry sources. 


The figure is exceptional compared to other luxury houses that have been suffering from slowing growth in the face of a stagnant economy. Another luxury house Louis Vuitton’s sales hovered around 1-3 percent in the past 3-4 years. It is, in fact, posting a negative growth considering the price hikes reflected in its total revenue.

Sources told Yonhap News Agency that the annual sales of the Hermes store grew 25.7 percent and 32.7 percent in 2012 and 2014, respectively. The store saw a 27.9 percent sales growth last year, they said without revealing the location of the reported store.

Behind the rapid sales growth, industry insiders point out, is the customers’ undying desire for Hermes’ signature Birkin Bag. The bag named after French actress and singer Jane Birkin costs about 13 million won ($10,900) here, and some 70 million won for the limited edition product made of rare crocodile skin.

But it is nearly impossible to purchase the regular Birkin Bags here as it only produces a small number of the products worldwide to keep its exclusivity. The stores have even stopped keeping a waiting list since three to four years ago as the luxury house cannot keep up with the growing demand from customers for the bag -- known as a “must-have” among the exclusive members of the market.

“The real rich customers are increasingly focusing on super-expensive luxury goods to differentiate themselves from the masses who are capable of buying affordable luxury brands such as Louis Vuitton,” said an industry insider.

By Cho Chung-un (christory@heraldcorp.com)