Luxury Watches and Jewelry Drive Lotte Duty Free's Strongest Category Performance with 25% Quarterly Surge

South Korea’s premier duty-free operator is experiencing a remarkable transformation in its luxury goods portfolio, particularly within watches and fine jewelry. The category has emerged as a significant growth engine, with quarterly sales reaching a 25% year-over-year increase—a testament to shifting consumer preferences toward premium timepieces and jewelry as both investment pieces and status symbols.

Market Momentum Attracts Premium Brands

The surge in demand has prompted several prestigious international houses to strengthen their retail footprint. Damiani, the independently operated Italian jewelry maison, substantially upgraded its presence within Lotte Duty Free’s flagship Myeongdong location in central Seoul, nearly doubling its retail space. The brand subsequently established an additional boutique in Busan, tapping into the city’s substantial consumer base of approximately eight million residents.

Similarly, Breguet—the renowned Swiss watchmaker historically credited with pioneering the tourbillon mechanism—unveiled a new boutique in Lotte’s Myeongdong store earlier this month. Under the leadership of CEO Gregory Kissling, the Swatch Group-owned brand showcased an array of its signature collections, including the Reine de Naples 8918, Classic Moonphase 7787, and Marine 5517 Titanium models.

Broader Portfolio Success Across Multiple Brands

The jewelry and watch resurgence extends beyond these flagship brands. Luxury houses including Chaumet, Fred, Messika, and Pomellato have collectively recorded approximately 30% sales increases during the same quarterly comparison period. This widespread performance surge indicates a sector-wide phenomenon rather than isolated brand success.

Consumer Drivers and Strategic Positioning

Several factors underpin this exceptional growth trajectory. Younger consumers, increasingly influenced by K-pop culture and luxury influencers, perceive watches and jewelry as collectible assets with lasting value rather than mere accessories. Additionally, Lotte Duty Free’s targeted promotional campaign launched in May significantly amplified category visibility and sales conversion.

According to Lim Hyung-il, head of merchandising at Lotte Duty Free, the retailer remains committed to sustaining this momentum: “With customer interest in premium watches and jewelry steadily increasing, we will continue to strengthen the category’s competitiveness by providing a differentiated brand portfolio and an optimal shopping environment.”

The strategic expansion of premium brand offerings and continuous enhancement of the in-store environment position Lotte Duty Free to capitalize on sustained luxury market demand across both domestic and international customer segments.