MZ Hotspot... Emerging Wealthy Neighborhood Comes to Mind
Dior Also Preparing to Open Its First Official Store
[Asia Economy Reporter Jeon Jinyoung] Overseas luxury brands are turning their attention to Seongsu-dong, Seoul, following the footsteps of the MZ generation (Millennials + Generation Z). This is because Seongsu-dong is not only a ‘hot place’ attracting the newly emerging big spenders, the MZ generation, but has also established itself as a new affluent neighborhood with rising purchasing power among residents.
According to industry sources on the 5th, the French luxury brand Dior is currently preparing a standalone space on Yeonmujang 5-gil in Seongsu-dong and is in the final stages of construction aiming to open on May 1. This is the second standalone space following the flagship store in Cheongdam-dong opened in 2015. Dior will be the first luxury brand to officially open a store in Seongsu-dong.
The ‘Seongsu love’ from overseas luxury brands is not a recent phenomenon. The three major luxury brands ‘E·Lu·Sha (Herm?s, Louis Vuitton, Chanel)’ have already passed through Seongsu-dong with showrooms and pop-up stores. Herm?s held a bag-related exhibition at the D Museum in Seongsu-dong in May last year, and Louis Vuitton opened a ‘Temporary Residency’ store showcasing its men’s collection in Seongsu-dong in July last year. Chanel also operated a ‘Chanel Factory5’ pop-up store at S Factory in Seongsu-dong in June last year to commemorate the 100th anniversary of the ‘Number 5’ perfume. An industry insider explained, "Seongsu-dong is a vibrant place where young generations and artists gather," adding, "The combination of production facilities and art spaces is sufficient to express the creativity possessed by overseas luxury brands."
The changing consumer trends have also influenced the overseas luxury brands’ affection for Seongsu. Recently, the MZ generation has been shifting their visits from Garosu-gil in Sinsa-dong to Seongsu. The remodeled old factories have captured the hearts of the MZ generation who enjoy taking sentimental photos. According to a report by the Commercial Information Research Institute, the average daily floating population in Seongsu-dong last year was 27,503, about five times more than the 5,326 in Cheongdam-dong, the luxury hub of Gangnam, during the same period. The largest age group among the floating population was people in their 30s (22.3%). Additionally, the rising purchasing power of the residential population seems to have had an impact. Recently, Seongsu has emerged as a new affluent neighborhood with the arrival of three ultra-luxury apartment complexes: Galleria Foret, Acro Forest, and Trimage.
Professor Seo Yonggu of the Department of Business Administration at Sookmyung Women’s University said, "Seongsu-dong, where old buildings such as abandoned factories remain, best satisfies the retro vibe sought by the MZ generation," adding, "The MZ generation, who will become the big spenders of the future, are moving there, and the spending of the settled population is increasing, so the industry, including overseas luxury brands, is following to secure potential customers."
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