Korean branch of the global fashion brand Chanel, is facing a paradox in their sales progress. And this is reportedly thanks to the power of Jennie Kim of BLACKPINK. Following her departure from YG and the establishment of OA, BLACKPINK Jennie has reportedly created a massive impact on the sales division. Yet, the brand’s profit has shockingly decreased because of the Kpop star. So, what happened to BLACKPINK Jennie and what kind of impact did she bring for Chanel? Did she become the brand’s heavenly blessing or simply bring unwanted doom? Join us in the complete discussion below.
BLACKPINK Jennie Kim Leads Ambiguous Report Card for Chanel Korea
Chanel Korea has reportedly experienced a contradicting report card thanks to Jennie Kim of BLACKPINK. But that is not all there is to it.
On April 17, a Korean media outlet revealed that Chanel Korea had experienced increased sales but decreasing profits. The Korean branch of this luxury fashion brand reported one of the highest sales, over 1.7 trillion KRW (approximately 1.23 billion USD). However, Chanel’s operating profit had fallen by over 30%.
This report means that even though Chanel Korea had been doing impressive business, they failed to deliver practical results. And part of the reason was because of their advertising models, including BLACKPINK Jennie Kim.
Does The Korean Star Bring Blessing or Doom?
The report further explained that the reason behind these decreasing profits was that Chanel Korea had increased its investment in promotional activities.
This has resulted in increasing expenses, especially in advertising. That was especially when Chanel Korea invited global Korean stars like BLACKPINK Jennie Kim and G-Dragon.
“We invested heavily in brand and human resources last year as pandemic restrictions were lifted and the market environment changed.
The solid performance of the fashion watch jewelry, perfume, and beauty sector reflects our commitment to strengthening customized customer experiences.”
John Hwang, Chanel Korea’s head of finance.
Not only that, but Chanel Korea also recognized that the demand had decreased since the end of the pandemic. That’s why their products have also been piling up in the warehouse, waiting to sell.
Therefore, while the sales may have skyrocketed, the profits had significantly plummeted. They simply cannot cover all the expenses.
Finally, does it mean that the impact of BLACKPINK Jennie Kim as the face of South Korea has become a burden for Chanel? Or does it simply imply that Channel Korea can no longer afford Jennie?
After all, BLACKPINK Jennie is no longer an ordinary YG idol. Instead, she’s an independent artist with powerful global impact and influence, holding the key to many renowned fashion brands.
So, what do you think? Please share your thoughts in the comment.
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Source: Hankyung.
GOOO JENNIE!!