default-output-block.skip-main
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Luxury Stocks Might Be Affected by South Korean Airlines

Asiana Airlines will stop carrying commercial baggage on passenger flights bound for Hong Kong and mainland China.
Source: Shutterstock
By
  • Bloomberg

SEOUL, South Korea — Shares in France's Kering SA, LVMH, Hermes International and other luxury goods stocks could be active after Asiana Airlines Inc., South Korea's second-largest carrier, said it would stop carrying baggage meant for "commercial purposes" on passenger flights bound for mainland China and Hong Kong from Oct. 22 for safety reasons.

Luxury items such as pricey bags and cosmetics are often bought in South Korea and resold in China. The airline's announcement comes in a sector that has been rattled in recent weeks by social media posts and LVMH's comments on China cracking down on travellers returning home with suitcases full of luxury goods. Shares in Japan's Shiseido Co., LVMH, Kering, Moncler SpA as well as in Swiss watchmakers and spirits makers have plunged as a result.

Swatch Group AG, Kering and Richemont declined Thursday after disappointing Swiss watch export figures for September rekindled worries about a potential slowdown in demand for timepieces and other luxury staples in the second half of the year.

By Albertina Torsoli; editors: Celeste Perri, John Viljoen.

© 2022 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Luxury
Provide insight and analysis on fashion’s most powerful luxury brands.

This week LVMH will report results, and executives may offer clues about its megabrands’ next steps under new leadership. That plus what else to watch for this week.



From Prada to Dior, fashion’s embrace of Korean pop stars is going into overdrive as brands look to Asian consumers to fuel growth.


view more

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
How to Build a Profitable DTC Brand
© 2023 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions and Privacy policy.
How to Build a Profitable DTC Brand