Italy "Korea Shines Like a Star in the Luxury Market"
Last Year, Koreans Ranked No.1 Worldwide in 'Luxury Spending Per Capita'
Italy, the birthplace of luxury goods, is paying attention to the 'luxury consumption' that stands out particularly in the Korean market.
On the 29th of last month (local time), the Italian media outlet Il Sole 24 Ore reported on Korea, which has emerged as a major player in the luxury market, in an article titled "Luxury Goods Head to Korea." The media introduced Korea as having shone like a 'star' in the global luxury market last year.
The outlet stated, "Last year, Italy's exports to Korea increased by 4.4% compared to 2021," adding, "Among the top five export categories, most were fashion-related products such as leather goods (1st), footwear (2nd), clothing (4th), and jewelry (5th)."
It also noted that Korea's love for luxury goods is not a new phenomenon. Luxury brands have long considered the Korean market important and have recently expanded investments over the past year, showing continuous interest. This is because Korea is currently one of the most promising markets globally in terms of luxury consumption.
In this regard, various European luxury brands are expanding collaborations with K-pop stars. BTS members Suga and Jimin have been appointed ambassadors for Valentino and Dior, respectively, while BLACKPINK's Jisoo (Dior), Jennie (Chanel), Ros? (Saint Laurent), and Lisa (Celine) also serve as global ambassadors for luxury brands. This can be seen as an example demonstrating Korea's unique status in the luxury market.
Ferdinando Guelli, the Italian Trade Commissioner to Korea, said, "Korean consumers have a strong passion for fashion. They tend to lead fashion trends and seek unique and high-quality products," adding, "That is why even small Italian brands are sought after."
Is the Rise in Korean Luxury Consumption Driven by Rising Housing Prices and YOLO?
Earlier, the global investment bank Morgan Stanley analyzed that Korea's per capita luxury spending ranked first in the world last year.
According to a report released by Morgan Stanley, Koreans' luxury purchases in 2022 surged by 24% from the previous year, reaching a total of $16.8 billion (approximately 20.9 trillion KRW). The per capita amount was $325 (about 400,000 KRW), the highest in the world. The per capita luxury purchase amounts for Americans and Chinese were $280 (about 348,000 KRW) and $55 (about 68,000 KRW), respectively.
The report analyzed, "Korea has now become as important to luxury companies as Japan, which has more than twice the population," accounting for more than 10% of retail sales of top brands such as Prada, Moncler, and Burberry.
Bloomberg News analyzed that the surge in luxury consumption was driven by the rise in asset values due to soaring housing prices during the COVID-19 period. It also evaluated that Korea's relatively young millennial generation, having given up on purchasing homes, turned to high-end goods consumption, further boosting luxury demand. Additionally, the spread of social networking services (SNS) like Instagram and luxury brand ambassador activities by famous celebrities were interpreted as factors stimulating luxury consumption.
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