Gentle Monster profits drop worldwide: Is the luxury hype fading?

Parent company IICOMBINED reports a 24.3% decline, marking the first downturn after half a decade of uninterrupted growth.

Gentle Monster has reported steep declines in profit despite continued high-profile celebrity endorsements, showing that hype does not always translate into long-term success.

Based on disclosures filed with the Korea Exchange, Gentle Monster parent company IICOMBINED saw a 24.3% drop in profits for 2024, totaling 177 billion won (₱7.096 billion), down from 233.8 billion won (₱9.371 billion) the previous year. The Seoul Economic Daily reports the decline is the company’s first in five years, following sustained year-on-year growth since 2020.

Gentle Monster is a luxury eyewear and apparel brand best known for its collaborations with Jennie Kim of BLACKPINK. Its sister company, Tamburins, is also a well-known cosmetics and fragrance line.

Competition and “design wars”

Industry experts suggest that the “Gentle Monster aesthetic”—characterized by oversized frames and flat lenses—is no longer a monopoly. Rising South Korean competitors are gaining ground, offering similar “K-style” luxury at more aggressive price points.

In fact, IICOMBINED is currently pursuing a court case against competing eyewear brand Blue Elephant over allegedly copied designs.

Gentle Monster was once seen as an ultimate status symbol, especially after entering the Philippines in October 2023 with the opening of its sole branch in Bonifacio Global City, Taguig. But the sudden decline in sales worldwide shows that hype and celebrity endorsements may not be able to sustain brand success—highlighting the need for constant innovation and relevance, especially in a highly competitive market.

 

 

Is the ‘Jennie Effect’ wearing off? Despite its high-profile BGC presence, Gentle Monster’s parent company reports a significant global profit slide, proving that even the strongest hype has its limits.

 

 

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