South Korea may become a new market for luxury goods

According to data from global market research firm Euromonitor International, the size of South Korea's luxury goods market exceeded US$12.5 billion last year , ranking seventh in the world. Among them, the total sales of the three major brands Hermès, Louis Vuitton and Chanel in South Korea reached 2.5 trillion won, and the size of the online luxury goods market also increased by 11% to 1.59 trillion won .

This year, South Korea's luxury consumption has recorded strong double-digit growth , with an increase of 21.9% in January, 45.7% in February, 89% in March, and 57.5% in April. Some analysts say that South Korea may become one of the fastest recovering luxury markets after China.

Why is the consumption of the Korean luxury goods market growing? Of course, it is inseparable from the economic growth and the increase in national income of South Korea. It is understood that in 2020, although the Korean economy experienced a slight setback due to the epidemic, it still achieved a total GDP of US$1,609.188 billion.

As the epidemic is effectively controlled, South Korea's economy is gradually recovering in 2021. According to statistics, South Korea's GDP in the first quarter of 2021 increased by 1.9% year-on-year, and the official GDP in the second quarter increased by 6% year-on-year. Economic recovery and consumption recovery will also promote the increase in luxury consumption to a certain extent.

As we all know, Korean entertainment has almost become a national pillar industry in South Korea. Korean stars and idol groups have a high influence in South Korea and even the entire East Asia region. The behavior of top Korean stars endorsing luxury goods in recent years will also promote the increase of luxury consumption in South Korea to a certain extent.

Korean celebrity endorsements have a very obvious effect on increasing product sales. The Korean idol group BTS is the top Korean idol group. The trendy brands they often wear, such as Fear of God, Off-White, Visvim, Amiri, Yeezy, Balenciaga, etc., have caused their sales to soar visibly.

According to data from fashion search engine Lyst, after BTS members Suga and RM wore T-shirts and pink shirts designed by Virgil Abloh, searches for the same items soared. In April this year, Louis Vuitton, the world's largest luxury brand, announced that the Korean idol group BTS was its global brand ambassador , and the advertising blockbuster featuring BTS members also sparked heated discussions on social media.

Rosé, a member of the popular Korean idol group Blackpink , has become a Tiffany brand ambassador. Members Lisa, Jisoo and Jennie have also been deeply tied to Celine, Dior and Chanel respectively.

Not only popular stars, but also mature Korean stars such as Song Hye Kyo and Jun Ji Hyun have firmly grasped the endorsement of luxury brands. Song Hye Kyo was appointed as the brand ambassador of French jewelry and watch brand Chaumet in the Asia-Pacific region, and also serves as the image ambassador of Fendi in Korea, while Jun Ji Hyun serves as the spokesperson for Alexander McQueen in Korea.

Rising incomes and celebrity endorsements have greatly boosted the sales of luxury goods, which are becoming increasingly popular among younger consumers . South Korean media Asia Economy reported that the younger generation in South Korea ( 18-35 years old) is also showing a marked increase in their enthusiasm for luxury goods .

Luxury goods consumption grows in South Korea

South Korea's consumer market is booming