Koreans still love fake Vuitton products

Louis Vuitton has been the most counterfeited luxury brand in Korea over the past five years in terms of price.

In its report recently submitted to Rep. Park Myung-jae of the main opposition Liberty Korea Party, the Korea Customs Service (KCS) said it confiscated fake Louis Vuitton items worth 208 billion won ($183 million) between 2012 and 2016.

Rolex, Cartier, Chanel, Burberry and Gucci followed Louis Vuitton with 195.1 billion won, 146.7 billion won, 144.6 billion won, 92.4 billion won and 74.8 billion won, respectively.

The KCS said it found 461 counterfeit luxury bags worth 603.3 billion won and 204 imitation luxury watches worth 911.3 billion won.

The total value of fake watches fell to 35.2 billion won last year from 304.3 billion won in 2012, while the value of counterfeit bags soared to 110.4 billion won from 37.6 billion won in 2015.

Among 1,603 counterfeit items worth 2.82 trillion won, more than 90 percent of the products worth 2.54 trillion won were smuggled from China. Hong Kong followed with 108 items worth 190.9 billion won and Japan accounted for 44 products worth 33.6 billion won.

The KCS report showed the number of knockoffs fell to 181 items worth 332.2 billion won from 593 items worth 933.2 billion won in 2012.

The KCS uncovered 374 items worth 574.9 billion in 2013, 262 items worth 516.2 billion won in 2014 and 193 items worth 465.3 billion won in 2015.

However, the total value of Louis Vuitton imitations was 43.9 billion won last year, up from 10.3 billion won a year earlier.

In Korea, consumers have dubbed Louis Vuitton bags “three-second-bags,” saying they are seen on the street every three seconds. From the perspective of critics, the brand is too common to be cool.

According to industry officials, Louis Vuitton’s sales growth has fallen at major department stores in Korea over the past few years. Its sales even contracted at one department store last year, while Hermes and Chanel chalked up double-digit growth at the same store.

Consumer complaints have continued about poor after-sales service and pricing policies.

Louis Vuitton’s leather bags cost almost as much as new ones to be repaired, while prices of new bags have gone up about 7 percent every year.

Louis Vuitton Korea also has been criticized for not revealing how much donates to social causes. Because it became a limited liability company in late 2012 it does not have to disclose its income statement and balance sheet.

Louis Vuitton Korea claims it has donated a substantial amount, but this cannot be verified.

However, a recent regulatory change is expected to prompt the company to disclose all the data beginning next year.