"Sanel is Boring" MZ Generation Emerging as Major Buyers of 'New Luxury Brands' [Heo Midam's Youth Report]

Popularity of 'New Luxury' Brands like ARMY and Maison Kitsun? Among MZ Generation
Also Rising as New Backbreakers
Experts Say "Turning to New Luxury Brands to Showcase Personal Taste"

A department store in Seoul is bustling with citizens. The photo is unrelated to specific expressions in the article. [Image source=Yonhap News]

Editor's NoteHow is your youth remembered? From teenagers to college students and office workers, we bring you the joys and sorrows unique to 'youth.'

[Asia Economy Reporter Heo Midam] Recently, among young people, there has been an increase in those seeking so-called 'new luxury' brands like Ami and Maison Kitsun? instead of Chanel and Louis Vuitton. Until just a few years ago, luxury goods were perceived as the exclusive domain of economically affluent middle-aged and older adults. However, with the rapid rise of new luxury brands that are relatively more affordable compared to traditional luxury brands, a 'new luxury craze' is sweeping through the MZ generation (those born from the early 1980s to the early 2000s).

However, some have pointed out that many teenagers lacking economic power rely financially on their parents to purchase luxury goods. Experts analyze that the MZ generation turns to new luxury brands to showcase their taste and discernment.

Recently, overseas fashion brands with simple designs but priced from hundreds of thousands to millions of Korean won have become popular among the MZ generation. Representative brands include French clothing brands Ami, Maison Kitsun?, Maison Margiela, and the British designer brand Paul Smith.

These brands, characterized by simple designs, have gained popularity among the MZ generation, leading to rapid sales growth. In particular, sales of Maison Margiela, imported by Shinsegae International, increased by 62.4% from January to the 16th of last month compared to the same period last year. During the same period, Acne Studios and Paul Smith sales rose by 33.4% and 39.3%, respectively.

These overseas fashion brands are more expensive than general brands but cheaper than traditional luxury brands like Herm?s, Louis Vuitton, and Chanel, hence they are also called 'new luxury.'

However, the prices remain burdensome for teenagers without economic power. Ami and Maison Kitsun? knitwear and shirts, even though only featuring the brand logo, can cost around 400,000 won.

As a result, the term 'deunggol breaker,' which originated from an outdoor brand craze ten years ago, has shifted to the luxury market. 'Deunggol breaker' refers to items so expensive they strain the parents' finances. In the past, high-priced padded jackets popular among high school students caused worries for the parent generation; recently, concerns have grown due to teenagers' preference for luxury goods.

On the morning of the 30th of last month, citizens are waiting to enter in front of the Shinsegae Department Store Luxury Hall in Jung-gu, Seoul. The photo is unrelated to specific expressions in the article. [Image source=Yonhap News]

Such concerns are not hard to find even on mom cafes. One netizen shared on a mom cafe, "My son is a high school student, and his friends even work part-time jobs to buy luxury goods," adding, "At first, my son wasn't interested in luxury brands, but after his friends became interested, he asked me to buy him a Thom Browne cardigan." She continued, "I don't want to discourage my child, but I'm worried about having to support luxury goods purchases."

In this regard, a survey on youth luxury consumption conducted by 'Smart School Uniform' targeting 358 middle and high school students revealed that 54.6% of youths have purchased luxury goods. Regarding future luxury purchases, 76% of respondents said they plan to buy luxury goods.

However, since youths lack economic ability, 39.1% said "my parents buy them for me," while 25.7% said "I save my allowance to buy them," and 14.2% said "I earn money through part-time jobs to buy them," ranking second and third respectively.

Given this situation, many students express feelings of relative deprivation when seeing peers who buy expensive luxury goods.

Kim (18), a student at a high school in Seoul, said, "There aren't many students with luxury goods at our school. Many use luxury cosmetics, but I haven't seen many wearing luxury clothes," adding, "One classmate posted a photo on SNS wearing Gucci shoes, and I felt a bit envious."

Experts cite the desire to show off as one reason for the popularity of new luxury brands. Professor Eunhee Lee of Inha University's Department of Consumer Studies said, "So-called 'EruSha' (Herm?s, Louis Vuitton, Chanel) are not brands targeting people in their teens and twenties and are already mainstream brands," adding, "One reason the MZ generation consumes luxury goods is to show off. Not only to display wealth but also to showcase their taste and information, they turn their attention to new luxury brands."

She continued, "SNS has had a significant influence on teenagers becoming interested in luxury goods," adding, "They put in more effort to stand out to others."