MZ Generation Familiar with Digital Technology Ventures into New Investment Strategies
Since the outbreak of COVID-19, there has been a significant surge in investment fever both domestically and internationally, with many people pursuing various investment routes beyond fixed incomes. Especially at the center of this trend are the MZ generation, who are not only proficient in using digital platforms but also open to new investment methods, making their unique investment styles stand out.
The MZ generation is focusing on new fields beyond just stocks or real estate, including luxury goods, artworks, music copyrights, and buildings. Among these, investments through reselling limited-edition sneakers or highly scarce luxury items, as well as fractional investments, are gaining popularity.
Investment through reselling luxury goods, artworks, and sneakers
Expensive limited-edition shoes, luxury goods, hard-to-get Rolex watches, and Chanel bags that can only be purchased through open runs are attracting much attention from the MZ generation as means of reselling.
Reflecting these needs of the MZ generation, the domestic luxury platform Philway recently launched a ‘consignment sales service.’ Philway appraises unused luxury items and proposes reasonable prices based on market value, then handles the entire consignment sales process quickly and safely without complicated procedures.
Philway is currently running an event throughout May offering free consignment sales fees, drawing significant participation from the MZ generation.
MZ generation broadens investment scope... turning to fractional and alternative investments
Alternative investment refers to investing in assets other than traditional investment products like stocks or bonds. Previously, this mainly included real estate, private equity funds, and venture companies, but recently, a variety of investment options have emerged and diversified.
Among these, the MZ generation is showing interest in music copyright investments and fractional investments, which allow investing in luxury goods like Rolex watches or buildings in Gangnam in shares. Through this, owners who hold even a small portion of ownership can later expect dividends or capital gains.
As fractional investment gains popularity, the fractional investment platform market is also growing simultaneously. In the music market, for example, Brave Girls’ “Rollin’,” which recently gained renewed attention through a chart resurgence, achieved a copyright return rate of 1000%.
A recent notable case in fractional investment is the emergence of platforms that support dividing difficult-to-invest items into shares so individuals can invest as much as they want. The fractional investment platform ‘Peace’ revealed a product called ‘Rolex Collection No.1’ in its first portfolio, raising 118 million KRW in just 30 minutes.
What is the outlook going forward?
The MZ generation is analyzed to be attracted to the idea of jointly purchasing expensive artworks, luxury goods, or buildings within their economic means, sharing profits, and exercising ownership rights even in small portions. Their consumption and economic interests have a huge influence, reflecting popular culture. These interests are expected to expand further into popular culture, new industrial fields, digital platforms, and e-commerce.
Experts interpret that as fractional investors increase?from simple luxury consumption to investment through luxury reselling, and shared investments in real estate, artworks, and music copyrights?related companies should closely monitor these trends as key areas of interest.
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