LVMH Group Official Stepped Down Following Failure to Secure Contract Renewal with BTS

It’s no secret that BTS has become a sought-after collaborator for luxury brands, and it’s all thanks to their incredible popularity. 

High-end fashion and luxury companies are eager to team up with BTS to tap into their massive fanbase and expand their customer reach.

Besides BTS, more and more brands are partnering with K-pop idols to endorse their products.

Recently, Louis Vuitton, a famous luxury brand, has started a new team called “Celeb Team” to work with K-pop stars. 

This team is part of the main office, not just the Korean office. They find and manage K-pop idols to be the faces of Louis Vuitton’s ads. The main office signs contracts with the stars and uses its resources to support and manage them.

Mr. A, who oversaw public relations at Company L, an LVMH Group member, stepped down after failing to renew BTS’ global ambassador contract. He joined Gucci but faced similar pressure to get K-pop idols to collaborate with the brand. 

Gucci is now signing Hanni from NewJeans as an ambassador, and Mr. A is being asked to secure another K-pop star, indicating his new role still involves K-pop collaborations.

The marketing manager of Company B, a global sports clothing brand, recently quit their job. They had been under intense pressure from headquarters for over a year to land endorsement deals with popular K-pop groups BLACKPINK and NewJeans. 

The manager revealed that landing a deal with BTS is seen as a fast track to the top, with a promotion to headquarters president virtually guaranteed.

The going rate for BLACKPINK’s advertising services is estimated to be between 1.5 and 2 billion won. The commercial appeal of relatively new idol groups like IV LE SSERAFIM, and Stray Kids is skyrocketing, driving up their endorsement prices.

Lastly, global companies are eager to partner with K-pop idols for advertising because K-pop fans’ spending habits can make or break a brand’s success. Working with K-pop idols can greatly increase brand recognition and sales.