Luxury goods market in South Korea - statistics & facts

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 the majority of department stores’ sales in 2021.
Throughout the ongoing 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 are turning 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.

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.

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