Two years ago,the world's only duty free Louis vuitton store opened in incheon airport.
High fashion brand of France, Louis Vuitton, signed a deal to open its world’s first airport duty free outlet at Incheon International Airport of Korea in 2011.
Many foreign tourists planning to visit Korea and Koreans who would go abroad through Incheon International Airport were pleased by the news.
However, this issue has become a hot potato in the media because of the excessive profits to LV than other brands in Incheon airport. “We believe that Louis Vuitton was very demanding in the conditions for opening its first airport outlet. No other international airport would agree such conditions, but Incheon airport did.” said an industry source who knows the French brand well on condition of anonymity.
The privileges given to LV were advantaged location and lower tariff than other brands.
LV could not only open their outlet in front and center, between Gate 27 and 28, but they also pay only a quarter or one third of their revenues as a rent, although other duty free shops pay around 40 percent in general.
Because of this treatment, other existing shops had to move to another location and it caused great inconvenience to customers.
Due to these unfair conditions, Incheon airport has been criticized by public by reasons of crushing the pride of nation and snobbism.
Incheon International Airport retained its No.1 world ranking in customer satisfaction for last 6 years. Nevertheless, why did Incheon airport give those unfair privileges to LV giving up their pride? I think they could not help choosing that way for their benefit, because Louis Vuitton is expected to contribute to overfulfillment for 1.5 trillion won on Incheon airport’s annual revenues. Then, how can LV bring such enormous benefit to Incheon airport? This is because of the popularity of Louis Vuitton. It means LV is “common” and “familiar” brand to ordinary people than other luxury brands.
LV also treats luxury items, but it has competitive price. There are many lines in luxury brands and among the rest, low-priced line of LV is cheaper than other brands’.
However, most people consider LV as very high fashion and luxurious brand. Thus it can give good satisfaction for customers by not that much expensive price, but affordable a bit hard, so LV could be so famous in Korea.
This is the reason why we can see so many Korean women are carrying LV bag on their shoulder in anywhere, even though, they are not all that rich.
On 29th, oct 2013, according to duty free air star avenue, average daily sales of 280 million won of last year was plunge to 230 million won this year, reduced by about 18%. Even considering open special first year sales, it was down to minus(-)7% growth rate more than doubled compared to last year. now it's slowly losing its reputation
Incheon Airport Duty Free store has privilege of world's only duty free LV shop and high sales of first year made (LVMH) group,owner company of LV brand to pay special attention. High fashion brand of France, Louis Vuitton, signed a deal to open its world’s first airport duty free outlet at Incheon International Airport of Korea in 2011.
Many foreign tourists planning to visit Korea and Koreans who would go abroad through Incheon International Airport were pleased by the news.
However, this issue has become a hot potato in the media because of the excessive profits to LV than other brands in Incheon airport. “We believe that Louis Vuitton was very demanding in the conditions for opening its first airport outlet. No other international airport would agree such conditions, but Incheon airport did.” said an industry source who knows the French brand well on condition of anonymity.
The privileges given to LV were advantaged location and lower tariff than other brands.
LV could not only open their outlet in front and center, between Gate 27 and 28, but they also pay only a quarter or one third of their revenues as a rent, although other duty free shops pay around 40 percent in general.
Because of this treatment, other existing shops had to move to another location and it caused great inconvenience to customers.
Due to these unfair conditions, Incheon airport has been criticized by public by reasons of crushing the pride of nation and snobbism.
Incheon International Airport retained its No.1 world ranking in customer satisfaction for last 6 years. Nevertheless, why did Incheon airport give those unfair privileges to LV giving up their pride? I think they could not help choosing that way for their benefit, because Louis Vuitton is expected to contribute to overfulfillment for 1.5 trillion won on Incheon airport’s annual revenues. Then, how can LV bring such enormous benefit to Incheon airport? This is because of the popularity of Louis Vuitton. It means LV is “common” and “familiar” brand to ordinary people than other luxury brands.
LV also treats luxury items, but it has competitive price. There are many lines in luxury brands and among the rest, low-priced line of LV is cheaper than other brands’.
However, most people consider LV as very high fashion and luxurious brand. Thus it can give good satisfaction for customers by not that much expensive price, but affordable a bit hard, so LV could be so famous in Korea.
This is the reason why we can see so many Korean women are carrying LV bag on their shoulder in anywhere, even though, they are not all that rich.
On 29th, oct 2013, according to duty free air star avenue, average daily sales of 280 million won of last year was plunge to 230 million won this year, reduced by about 18%. Even considering open special first year sales, it was down to minus(-)7% growth rate more than doubled compared to last year. now it's slowly losing its reputation
In May last year,LVMH Chairman Bernard Arnaud directly came visited this store for this reason.
It was speculated by industry source that this sales reduce was due to decline of japanese tourists in korea caused by yen,japanese currency drop.
Another speculated reason for reduced sales of duty-free stores of Louis Vuitton is popularities of LV brands is cooling down in domestic market.
Luxury industry official said, " Until a few years ago, you could easily see long lines of customers waiting in front of shop and Louis vuitton bag had nickname of 3 seconds bags in korea because you could see LV bag in every 3 seconds on street, is losing power in the domestic market,"
Meanwhile, Louis vuitton store at incheon international airport was run by shilla duty free since september 10,2011
The best part about this Louis Vuitton handbag is that it suits with every designer outfit and it is also comfortable to carry.
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