South Korea Luxury Goods Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 4.82 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
South Korea Luxury Goods Market Analysis
The South Korea luxury goods market is projected to register a CAGR of 4.82 % during the forecast period, 2022-2027.
A major share of revenue generated by luxury goods in South Korea came from brick-and-mortar shops in the pre-pandemic era. After the rapid spread of the coronavirus in 2020, the country faced lockdowns, and hence, the closure of shops including specialty stores and other luxury goods stores adversely affected the high-end products market in South Korea. However, the halt in sales due to the pandemic allowed the companies to plan and diversify their distribution strategies as they understood the drawbacks of using brick and mortar as the main sales channel with the commencement of COVID-19.
The players in the market began to narrow the buyer-seller divide, and the majority of the players began establishing their digital channels in 2021 to sustain themselves in the market in long run. For instance, in April 2021, Shinsegae Group, South Korea's largest retail group launched an e-commerce platform called SSG.com to market luxury goods. Additionally, online channels have helped in the post-pandemic sales recovery in South Korea's luxury goods market.
In the medium term, the market growth can be attributed to the rising number of online shoppers as consumers now easily obtain product-related information and prices online due to the growth of e-commerce. Different celebrities like K-pop stars have a huge influence on the young population in the region. Hence, the promotion and advertisements of luxury goods featuring such celebrities also help in driving the luxury goods market in South Korea. Consumers in South Korea are quite selective when it comes to their purchases of high-end products, such as cosmetics and fragrances. As a result, the businesses competing in the market are enhancing their ecological packaging designs.
South Korea Luxury Goods Market Trends
This section covers the major market trends shaping the South Korea Luxury Goods Market according to our research experts:
Celebrities Endorsements Driving the Demand for Luxury Goods in South Korea
South Korea is renowned worldwide for its beauty standards as well as a youth-inspired culture that emphasizes external appearance and personal grooming, which in turn drives the demand for luxury fashion goods. Further, the adoption of luxury goods is influenced by celebrity endorsement and digital media advertisements. For instance, key brands endorsed by South Korean celebrities include Celine, Prada, Chaumet, MAC, Calvin Klein, and Bulgari among others.
By fusing depth and artistry with looseness and casual elegance, these luxury companies are developing an aspirational lifestyle and inspirational personalities with K-Pop celebrities. Korean superstars have quickly emerged as the newest faces of the most successful and influential luxury brands in the world including "Human Gucci" (superstar singer Kai from the K-Pop band EXO), "Human Chanel" (Blackpink's Jennie), "Human Diors" (Blackpink's Jisoo and the Korean singer/actress Suzy), and Louis Vuitton's collaboration with pop band BTS.
Rise in Popularity of E-commerce Shopping
The growing preference of South Korean consumers for online retail stores to purchase various fashion accessories has raised the demand for luxury goods. People are more likely to purchase luxury goods like shoes, handbags, jewelry, watches, and other such items through e-commerce platforms online channels allow the purchase of foreign brands from the comfort of the consumer's home. For instance, the data published by the Korea Customs Agency reveals that in 2021, apparel (17.7%), electronics (10.4%, footwear (7.3%), and handbags and bags (6.8%) were the most purchased foreign-sourced products by Korean online shoppers. Online transactions are more enticing to Gen Z and millennials because of the convenience they offer owing to the user-friendly interfaces and the safe payment options of e-commerce platforms. Further, the top market participants have increased the adaptability of the online premium product purchasing process by enabling customers to virtually try on high-end products before making a purchase.
South Korea Luxury Goods Industry Overview
The luxury goods market in South Korea is fragmented as both domestic and foreign businesses compete for market share. The companies operating in the South Korean luxury goods market focus on various strategies including partnerships, product launches, expansions, advertising, and promotions featuring popular celebrities to increase their brand presence among customers. For example, in May 2022, to provide a unique and increasingly personalized experience to the brand's audience, Dior unveiled its first WhatsApp campaign in partnership with Jisoo from the popular South Korean girl group Blackpink formed by YG Entertainment. Prada Holding S.p.A., Hermes International S.p.A, LVMH Moët Hennessy Louis Vuitton, Chanel, The Estée Lauder Companies, and Kering Group are a few of the major companies that dominate the South Korea market.
South Korea Luxury Goods Market Leaders
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Prada Holding S.p.A
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LVMH Moet Hennessy Louis Vuitton
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Kering Group (Gucci)
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H & M Hennes & Mauritz AB (H&M)
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The Estee Lauder Companies Inc.
*Disclaimer: Major Players sorted in no particular order
South Korea Luxury Goods Market News
- In May 2022, Dior, the French fashion brand opened a large pop-up store in Seoul, South Korea. The store features several rooms inside, each dedicated to a definite segment of the women's ready-to-wear line.
- In January 2022, Sequoia Capital China agreed to acquire a prominent stake in the South Korean luxury brand We11done, the in-house brand of the Korean concept store, Rare Market.
- In February 2021, Kampos, an Italian luxury brand, entered the South Korean market to support its global expansion. Kampos agreed to a partnership with Sanghyun Yu, a distributor with deep knowledge of the market and luxury goods, based in Seoul.
South Korea Luxury Goods Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Force Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Clothing and Apparel
5.1.2 Footwear
5.1.3 Bags
5.1.4 Watches
5.1.5 Jewelry
5.1.6 Watches
5.1.7 Other Accessories
5.2 By Distibution Channel
5.2.1 Single-Brand Stores
5.2.2 Multi-Brand Stores
5.2.3 Online Stores
5.2.4 Other Distribution Channels
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 The Estee Lauder Companies Inc.
6.3.2 H & M Hennes & Mauritz AB (H&M)
6.3.3 Prada Holding S.p.A
6.3.4 Rolex SA
6.3.5 Giorgio Armani S.p.A
6.3.6 Kering Group (Gucci)
6.3.7 Hermes International SA
6.3.8 Gentle Monster
6.3.9 Chanel
6.3.10 We11Done
6.3.11 LVMH Moet Hennessy Louis Vuitton
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID-19 ON THE MARKET
9. DISCLAIMER
South Korea Luxury Goods Industry Segmentation
As per the study scope, luxury goods refer to high-end or premium products like luxury watches, luxury footwear, luxury clothing, apparel, and other such products that are of superior quality and are priced higher than other goods available in the market. South Korea luxury goods market is segmented by type and distribution channel. By type, the market is segmented into clothing and apparel, footwear, bags, jewelry, watches, and other accessories. In terms of distribution channels, the market is segmented into single-brand stores, multi-brand stores, online stores, and other distribution channels. The report offers market size and forecasts for the luxury goods market in value (USD million) for all the above segments.
| By Type | |
| Clothing and Apparel | |
| Footwear | |
| Bags | |
| Watches | |
| Jewelry | |
| Watches | |
| Other Accessories |
| By Distibution Channel | |
| Single-Brand Stores | |
| Multi-Brand Stores | |
| Online Stores | |
| Other Distribution Channels |
South Korea Luxury Goods Market Research FAQs
What is the current South Korea Luxury Goods Market size?
The South Korea Luxury Goods Market is projected to register a CAGR of 4.82% during the forecast period (2024-2029)
Who are the key players in South Korea Luxury Goods Market?
Prada Holding S.p.A, LVMH Moet Hennessy Louis Vuitton, Kering Group (Gucci), H & M Hennes & Mauritz AB (H&M) and The Estee Lauder Companies Inc. are the major companies operating in the South Korea Luxury Goods Market.
What years does this South Korea Luxury Goods Market cover?
The report covers the South Korea Luxury Goods Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the South Korea Luxury Goods Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
South Korea Luxury Products Industry Report
Statistics for the 2024 South Korea Luxury Products market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South Korea Luxury Products analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
