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| Artistic Director of Dior Men Kim Jones |
Last year, Dior had sales of 186.9 billion won and an operating profit of 44.2 billion won, a respective doubling and quadrupling from the previous year, data from the country's top financial regulator showed.
Its two-year performance looks impressive compared to those of other fashion houses such as Salvatore Ferragamo and Yves Saint Laurent, whose sales only increased by 6 percent and 21.6 percent, respectively. The growth rate of Yves Saint Laurent's operating profit actually decreased by 25.4 percent from 2018.
Dior's achievement here amid the prolonged COVID-19 pandemic is attributed to its aggressive marketing utilizing K-pop musicians.
It has selected K-pop singers Suzy and BLACKPINK's Jisoo as its brand muses in social media campaigns.
Last year, Aritisic Director of Dior Men Kim Jones designed costumes for the world tour of K-pop band BTS.
Appointed as the top designer of the French fashion house in 2018, Jones quickly attracted young customers with his collaborations with non-luxury brands.
Until a decade ago, Dior's popularity had been moving downward due to its conventional and tedious fashion items, recording an operating loss of 2.7 billion won on sales of only 30.4 billion won in 2010.
However, Jones instantly brought back Dior's heyday here in July 2018, opening a menswear store again in Shinsegae Department Store in Seoul. Dior's menswear business withdrew from the Asian market in 2014 due to the brand's poor performance in the region.
Dior currently operates 14 boutiques at local department stores here and it plans to open a new one next month at the Galleria Department Store in Gwanggyo in Suwon, Gyeonggi Province.
"Until five years ago, Dior was perceived as one of the outdated fashion brands. But Jones gave life back to it by introducing fashion styles appealing to younger customers and collaborating with street and sports brands like Stussy and Nike," a Hanwha Galleria official said. "Its biggest success recently is with Nike, introducing a collaboration on sneakers. This raised Dior's reputation in the fashion scene a lot."
"Gucci captured young customers' hearts two to three years ago and then Balenciaga did the next year. I think Dior has taken over that popularity now," the official said.
Increasing demand for luxury items is another contributing factor to Dior's success here. Despite the worsening COVID-19 pandemic, sales of luxury goods at department stores keep increasing.
For Shinsegae Department Store, its revenue increased year-on-year by 28 percent in the second quarter of 2020. Hanwha Galleria also showed a 24 percent jump in sales in the same period.
"We cannot reveal the exact number but Dior is showing the fastest sales growth of all among luxury fashion houses," an industry source said.
Dior's lifestyle products are selling well too.
As more people stay home because of the government's quarantine efforts to fight the pandemic, they began to spend money decorating their homes.
Dior is currently selling lifestyle products such as tablecloths and dinnerware at its flagship boutique in the posh Cheongdam street in southern Seoul.
The French fashion house also operates "Dior Cafe" there where people can drink coffee from expensive cups and eat dessert on expensive dishes.
"As the COVID-19 situation prolongs around the world, people are seeking to purchase luxury items to decorate home interiors. Luxury products consumption in Korea is growing and Dior will put up a good performance taking this as an opportunity," the industry source said.
