Nina Jobst
Research expert covering South Korea
Luxury goods market in South Korea - statistics & facts
South Korean consumers are very trend-aware while being interested in fashion, and even in the only recently recovering apparel market, high-end fashion has been leaving its mark. Driven by consumers from the MZ generation with larger disposable income, South Korea is expected to be a leader in the luxury goods market in the Asia-Pacific region, placing just behind Australia in terms of revenue. Not stopping there, the country also managed to place among the top markets for luxury items worldwide.
Throughout the COVID-19 pandemic, the sales revenue of various high-end brands have been growing. Amidst the financial insecurity caused by the strained economic situation, many South Koreans turned to luxury items as a form of investment. Although luxury shopping increased during the pandemic, South Korean consumers were prevented from physically shopping in duty-free shops due to travel restrictions and social distancing rules. Therefore, the online market for luxury shopping blew up, and various platforms rose to the surface. Despite lifted regulations, luxury online shopping continued thrive, as there is no sign that the high-end brands will loose their popularity soon, as such items are considered status symbols.
Luxury goods retail
Most global luxury brands of high value like Hermès, Chanel, Dior, and more, have flagship stores that are often frequented by celebrities in the capital city Seoul’s Gangnam district. However, some brands such as Louis Vuitton are considering leaving the downtown retail landscape and focusing more on airport duty-free shops and department stores to enforce a brand image of exclusivity and high value. Brands staying in department stores are selling rather well, as luxury goods made up a large portion of department stores’ sales.Throughout the COVID-19 pandemic, the sales revenue of various high-end brands have been growing. Amidst the financial insecurity caused by the strained economic situation, many South Koreans turned to luxury items as a form of investment. Although luxury shopping increased during the pandemic, South Korean consumers were prevented from physically shopping in duty-free shops due to travel restrictions and social distancing rules. Therefore, the online market for luxury shopping blew up, and various platforms rose to the surface. Despite lifted regulations, luxury online shopping continued thrive, as there is no sign that the high-end brands will loose their popularity soon, as such items are considered status symbols.
What luxury brands are popular in South Korea?
With a variety of options to choose from, the decision on what luxury good to buy was mostly based on the item’s design. Brand value and price were also high up on the list. On the other hand, a brand’s popularity was not as important. In fact, according to another survey, a surge in popularity could even lead to the loss of interest in a luxury brand, especially among younger consumers. This did not seem to apply, however, to already well-known brands. For example, Louis Vuitton was one of the most popular luxury goods brands in South Korea, despite it being famous among consumers.
