From Chanel bags to Rolex watches, luxury goods garner fans around the world, but there are countries that stand out in the market for these overpriced items for the common man.
Many countries have seen spending on luxury goods rise in recent years, but South Korea spends the most money per capita, Euronews explains. The conclusion is from Morgan Stanley analysts who highlight that Koreans spent 24% more in 2022 on these kinds of goods, for a value corresponding to about 15.4 billion euros, or 300 euros per capita.
This is a much higher price than other countries, such as China or the USA, which spend “only” 46 and 234 euros per capita respectively.
In the case of Koreans, this demand is related to a huge increase in purchasing power and the desire of some South Koreans to reach a certain social status. In Korean society, it is more socially acceptable to flaunt wealth. According to a McKinsey study, only 22% of South Koreans believe that displaying luxury products is in poor taste, while 45% of Japanese and 38% of Chinese believe the same.
South Korea’s luxury market has been growing steadily in recent years, and this growth has been accelerated by the Covid-19 pandemic. As more consumers choose to shop online, luxury brands have seen a significant increase in digital sales.
South Korea’s luxury mania is more than beneficial for brands. Moncler, for example, reported that its revenue in South Korea more than doubled in the second quarter of 2022 compared to 2020. Similarly, Richemont Group, owner of Cartier and Van Cleef & Arpels, among others, recorded a significant increase in sales this the Southeast Asian country.
In addition to the growing luxury market in South Korea, luxury brands are also taking advantage of the country’s huge entertainment industry to boost sales. A typical example of this is the recent appointment of the star of the famous K-pop group, BTS, Jimin, as the global ambassador of Dior.
As Dior’s new global ambassador, @BTS_BigHit Team member JIMIN kicks off this collaboration embodying Kim Jones’ newest creations. Wearing a sporty look inspired by #DiorSummer23 collection, the performer conveys Monsieur Dior’s passion for the outdoors. pic.twitter.com/t3PRuekW6u
—Dior (@Dior) January 16, 2023
Dior announced the partnership with Jimin via social media last month, noting that the BTS star’s appointment “solidifies” its relationship with the French brand and “maintains a bond” with menswear artistic director Kim Jones.
Kim Jones has already designed stage outfits for the K-pop group, and the relationship between Dior and Jimin goes way back.
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