Market Trends of South Korea Luxury Goods Industry
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.
