Actor Jo In-sung, selected as a model for the online luxury platform 'Catch Fashion.' (Photo by Catch Fashion)
[Asia Economy Reporter Seungjin Lee] The luxury goods market online has rapidly expanded due to the impact of COVID-19, sparking fierce competition among online platforms. From marketing battles featuring famous celebrities to legal disputes, the race to gain dominance is intense.
According to industry sources on the 21st, well-known celebrities such as Jo In-sung, Kim Hee-ae, Kim Hye-soo, and Ju Ji-hoon have begun appearing prominently on luxury online platforms like Must It, Treny, Ballan, and Catch Fashion. Although these platforms are still startups, they are making early moves to secure leadership in the rapidly growing online luxury market.
Catch Fashion recently appointed actor Jo In-sung as its model and released a digital advertisement video. Treny also selected actors Kim Hee-ae and Kim Woo-bin as models and launched a campaign titled "Change, Everything About Luxury Shopping." In March, Treny had also conducted brand campaigns with actors Lee Je-hoon and Jung Ryeo-won. Ballan has actively targeted younger consumers by airing TV commercials featuring actors Byun Yo-han and Bong Tae-gyu since April this year.
The reason these platforms prominently feature famous celebrities is that the core of purchasing luxury goods online is 'trust.' Unlike buying at department stores, online luxury purchases through parallel imports and other methods have always been accompanied by concerns about counterfeit products. Therefore, it is interpreted that these platforms are leveraging famous celebrities to build consumer trust.
Recently, legal battles between platforms have also ensued. Catch Fashion, a latecomer in the industry, filed complaints against competitors Must It, Treny, and Ballan for copyright infringement and false advertising. The accused luxury platform companies have announced legal countermeasures, calling Catch Fashion's claims one-sided.
Smile Ventures, which operates Catch Fashion, claimed that the three online luxury platforms (Must It, Treny, Ballan) unlawfully used copyrights belonging to Mytheresa, Matchesfashion, Farfetch, Net-a-Porter, YOOX, and others. They also filed a complaint with the Seoul Gangnam Police Station.
However, contrary to Catch Fashion's claims, the three online luxury platforms argue that they used the content under contracts with overseas boutiques and luxury platforms. In fact, the contract details with local companies for online luxury sales differ and are complex for each company, so a quick conclusion is unlikely.
An industry insider explained, "Trust is the lifeblood of the online luxury market, and this legal battle could significantly damage that trust, so a fierce dispute is expected," adding, "Due to the impact of COVID-19, the online luxury market size is expected to continue growing, so the competition for dominance among platforms is likely to persist."
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