“If a contract with BTS is concluded, you will be promoted to president”— Luxury brand insider reveals the current situation in the fashion industry

BTS has been one of the most sought-after K-pop bands and South Korean solo artists in the fashion industry. On May 22, 2024, Korean news outlet, Chosun Ilbo, reported that a former LVMH employee disclosed the fierce competition among brands to secure deals with K-pop artists, especially BTS. The individual had to resign from his position since he failed to renew Louis Vuitton's brand deal with BTS for the second time when their contract ended in early 2023.

Another employee—who doesn't wish to be named—came forward and told Chosun Ilbo that was fired from another luxury brand for failing to sign NewJeans or BLACKPINK for years. The industry insider revealed that if a brand employee can secure an endorsement deal with BTS then they get promoted directly to the company president.

"The current industry atmosphere is that if a contract with BTS is concluded, you will be promoted to president of the headquarters." (as reported by Chosun Ilbo)

The luxury item behemoth LVMH Moët Hennessy Louis Vuitton, commonly known as LVMH, reportedly made over 28 trillion won (more than $20.48 billion) in sales in 2023. The brand established a new department called "Celeb Team," which manages and casts K-pop idol stars as models for endorsements.

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Fashion industry insider revealed employees getting fired if they fail to secure a partnership with BTS

Chosun Ilbo reported that the industry insider revealed that all luxury fashion brands not only created a specialized team for K-pop celebrities but also demoted or terminated staff members who could not close deals with the artists.

The former LVMH employee, who was in charge of public relations (PR), had to turn in their resignation after BTS ended its brand deal with Louis Vuitton. The employee then got a job in the Italian-crafted leather goods and luxury items brand, Gucci. The Maison cut a deal with NewJeans member Hanni, however, the brand has been pressurizing the PR employee to secure another deal with a different K-pop idol.

In January 2023, when BTS' Jimin was appointed as the Global Ambassador for Dior and attended the Paris Men's Fashion Week, he singlehandedly generated over $17 million in Earned Media Value (EMV). He generated $5.6 million EMV with just one post from the Dior show. Overall, it accounted for 54% of Dior's total EMV generated at the international fashion event.

Jimin's presence at the Dior show is viewed by Lefty's Ramos as a great success. Lefty data shows that BTS' collective Instagram engagement rate of 4.62% is significantly higher than the norm for many other celebrities. The group's average engagement on social media is between 2 and 2.5% despite having their comments feature turned off permanently.

The band's other member Kim Taehyung aka V earned over $274 million EMV for CELINE from March to December 2023. It is the highest any CELINE Global Ambassador has amassed in the given frame. BTS' demand and value in the fashion industry is even more significant as Bottega Veneta—a luxury brand that never appointed a celebrity—broke its rule and announced BTS' Namjoon as their face, as reported by Fashion Network.

Additionally, the K-pop powerhouse band's youngest member Jungkook's being named as Calvin Klein's (CK) face in 2023 skyrocketed the brand's stock price and saved them from bankruptcy. Before airing of Jungkook's 2024 Spring campaign, the stocks were down 20%. However, his ads helped CK to an all-time high of $87.93 a share. They brought in $2157.9 million in revenue and $1250.3 million in gross profit during the first quarter.

Due to their widespread appeal, premium labels are investing into several Korean celebrities. BTS' Suga was appointed at VALENTINO's new Global Ambassador for Di.Vas which conveys "different values". It is the first time that the Maison had made a Korean star as the face of its brand. Suga was also seen at the VALENTINO Couture Paris Fashion Week show on January 25, 2023, and drove the highest crowd to the event.

Hugo Ramos, brand analyst at influencer and analytics firm Lefty, claimed that Enhypen was the most influential influencer at Milan men's fashion week, generating $7.2 million in earned media value (EMV) – roughly a quarter of Prada's total EMV of $31.6 million.

The members of BLACKPINK, Jennie, Lisa, Rosé, and Jisoo, have represented international luxury brands such as Chanel, CELINE, Saint Laurent, and Dior, respectively, for the past three years. Furthermore, Big Bang singer Taeyang, who was recently appointed as a Global Ambassador for Givenchy, was seated in the front row at Prada’s Autumn/Winter 2023 menswear show.

More and more Korean celebrities are been sighted at VALENTINO, Hermès, Ami, Saint Laurent, Maison Margiela, Kenzo, Gucci, Burberry, CELINE, and Loewe, among others. These stars include rapper Suga and vocalist J-Hope of BTS, Hoshi and Jeonghan of Seventeen, and singer-actor Rowoon.

In addition to big brands such as Apple, Coca-Cola, and McDonald's, luxury goods firms including Chanel, Gucci, Dior, and Burberry are also vying for their services as promotional models. This is because using them as models would enhance sales by two to three times, and the anticipated 3 billion won ($2.19 million) will be gained in marketing from social media posts stating that they have turned into endorsement models.

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Korean K-pop celebrities are sought after by this team, and contracts are immediately signed between the stars and the worldwide headquarters. The luxury goods firm intends to handle K-pop celebrities by utilizing the headquarters' skills.