Recovery in duty-free sales drives upbeat forecast for local jewelry brands

Didier dubot’s necklace [Photo provided by Sejung]

There is growing expectation that the revival of the duty-free sales sector will drive recovery in the Korean jewelry industry from the depths of the Covid-induced recession.

According to the announcement by Sejung Corp. on Sunday, which owns the local jewelry band didier dubot, sales during the first quarter of this year rose 12 percent from a year ago. As the quarterly sales were only 70 percent of their pre-pandemic levels, the recovery is expected to strengthen in the second half of the year. “The brand’s sales grew with the uptick of international travel, which lifted sales in the duty-free sectors,” said an unnamed official from the brand.

Holidays and Christmas are a boom season for the jewelry industry. Jewelry brands are likely to see growth in sales during the two months between November and December.

Sejung expected its jewelry brand to achieve the target of 50 billion won ($38.1 million) in sales this year, given the upbeat prospects about a recovery in duty-free sales, which rose 150 percent in the first quarter on year. Duty-free shops account for about 20 percent of the brand’s sales.

J. Estina, a South Korean jewelry maker that opened a store in Hyundai Department Store Duty-Free at Incheon International Airport, has been upbeat about its sales with the duty-free recovery. “The duty-free sector accounted for only 20 percent of our entire sales before the pandemic,” said a brand’s official. “We will work on adding more stores in airports and in Seoul.”

The Korean jewelry brand suffered a huge loss during the pandemic as Chinese tourists were major customers. However, the brand’s swung to the black in 2021 and then posted an operating profit of 2.6 billion won last year, up 90 percent on year.

Eland World Ltd, which recently launched its fine jewelry label The Grace London, is also considering opening duty-free shops. The monthly sales in June from the label‘s first store will likely surpass 1 trillion won.

According to the sources from the duty-free sector, local jewelry brands, such as didier dubot and Golden Dew, have experienced their sales generated from duty-free shops increase. HDC Shilla Duty Free found that its sales from local jewelry brands rose up to 300 percent in the first five months of this year from a year ago.

Shinsegae Duty Free and Hyundai Department Store Duty Free Co. also reported a 30 percent and 20 percent of rise in jewelry sales this year, respectively. “The border reopening and the growing popularity of Korean fashion brands are expected to lift local jewelry sales,” said a source from Shinsegae Duty Free.