Monica Vinader, a jewelry brand launched in the UK in 2008, will withdraw from the South Korean market next month. The brand gained popularity through its association with celebrities like Catherine, Princess of Wales; Bella Hadid; and Olivia Palermo. In South Korea, the fashion accessory specialist company StarLuxe has managed its distribution for more than a decade.
Monica Vinader Korea built its reputation by opening stores in popular areas frequented by young consumers and emphasizing sustainable jewelry. Currently, it operates six stores in major locations, including department stores and duty-free shops in Seoul’s Gangnam and Myeongdong districts and Pangyo in Gyeonggi Province.
According to sources familiar with the matter, Monica Vinader Korea will cease operations by the end of August. The Monica Vinader store in Shinsegae Department Store Gangnam branch will remain open until the end of this month, while the store in Shinsegae Department Store main branch will close after August 1. The Monica Vinader stores in Lotte Duty-Free main branch in Myeongdong and the JDC Jeju Airport Duty-Free store will shut down on August 31. Closing dates for other Monica Vinader stores will be announced sequentially.
Monica Vinader’s headquarters has not signed any extension contracts with other local distributors, indicating no immediate plans to continue operations in the South Korean market.
The domestic fashion industry has been struggling since the COVID-19 pandemic, with even large fashion companies facing significant declines in consumer spending since last year. LF’s operating profit dropped by 69% last year compared to the previous year. Similarly, Shinsegae International and Handsome saw their operating profits decrease by 57.7% and 40.3%, respectively. The situation has not improved much this year, with the textile and apparel sector index on the Korea Exchange dropping more than 24% in the past year to 260.53 as of July 17.
High-value jewelry, due to its intrinsic value, is directly affected by economic conditions. Fashion industry experts note a polarization in the domestic jewelry market, with consumers either seeking ultra-luxury imported brands for ceremonial purposes or opting for ultra-cheap accessories similar to fast fashion brands in the clothing sector.
Even prestigious high-end jewelry brands are facing challenges. De Beers, the first brand to popularize diamond engagement rings, withdrew from the South Korean market in 2021 and has not returned. Damiani, known for its cross necklaces popular among consumers in their 20s, saw its profits in the South Korean market drop by 15% last year compared to the previous year.
