[Report] "Ae·Ru·Sha Not Found in Department Stores, All Here" Sacred Place with 215.3 Billion KRW Transactions Last Year

'Luxury Secondhand Shop' Gugus Daejeon Timeworld Branch Visit
High-End Luxury Brand Products Massively Stocked
20 Years of Experience... Over 70 Authenticity Appraisal Staff

"In this corner, there are Hermes and Louis Vuitton bags. Across from it is the watch corner, featuring Cartier and Rolex."

On the 7th, we visited GUGUS Daejeon Timeworld branch. As soon as we entered the store, a variety of luxury products from different brands caught our attention. In addition to the flagship items such as bags and watches, jewelry, wallets, shoes, and clothing were displayed by category. High-end luxury brands like Hermes and Chanel, which are hard to find even in department stores, were also noticeable. The store’s interior and product arrangement were neatly organized, reminiscent of a premium luxury brand boutique.

Exterior view of Gugus Daejeon Timeworld branch. [Photo by Gugus]

Most of the products displayed here are pre-owned luxury items. GUGUS is the largest pre-owned luxury specialist company in Korea, established in 2002. It operates 25 stores nationwide and also trades pre-owned luxury goods online. Through its nationwide stores, it holds over 140,000 products and supports not only buying and selling but also after-sales service (AS).

The GUGUS Daejeon Timeworld branch visited by the press is located about a 5-minute walk from Galleria Department Store Timeworld branch. At this store, customers can buy or sell pre-owned luxury goods. They also handle unopened new products, allowing customers to purchase new items at reasonable prices. GUGUS relocated its Daejeon store to this location to establish it as a hub in the central region, increasing the store size by about five times compared to before. With the larger space, the product display area is more spacious, enhancing customer shopping convenience. The store also features two private consultation rooms for comfortable discussions.

The GUGUS Daejeon Timeworld branch handles the largest selection of high-end luxury brand products in Daejeon. This is because high-end brands like Hermes and Chanel have not entered department stores in the Daejeon area. As a result, customers in Daejeon had to travel to department stores in Daegu, Pangyo, or Seoul to purchase products from these brands. Considering this, GUGUS significantly expanded the high-end brand lineup at the Daejeon Timeworld branch.

Used luxury Hermes bags are displayed at Gugus Daejeon Timeworld branch.
[Photo by Lee Myunghwan]

Since pre-owned luxury goods are traded, the product inspection process is also stringent. This is because luxury goods often come with the stigma of 'counterfeit controversy.' To authenticate pre-owned luxury items, all GUGUS stores have staff capable of authenticating genuine products on site, and these staff regularly receive training for authenticating various brand products. Even if a product is initially judged genuine at the store, that is not the end. The product is sent to headquarters for a detailed inspection by professional authenticators.

The ability to authenticate genuine products is also a strength that differentiates GUGUS from other platforms. On online secondhand trading platforms that mediate transactions between individuals, disputes over counterfeit luxury goods often occur, but since GUGUS conducts thorough authentication on all products, the likelihood of such issues is low. The authentication system is divided into three detailed stages, and the 14 million-item luxury inspection database accumulated over time is utilized for authentication. Unlike other companies that outsource authentication staff, GUGUS employs professional authenticators in-house. Currently, about 70 professional authenticators belong to GUGUS headquarters, with an average tenure of 7 to 8 years.

Having conducted luxury authentication for over 20 years, GUGUS is confident in its reliability. A GUGUS representative explained, "Police or customs sometimes request us to determine whether luxury products are counterfeit," adding, "Recently, a provincial police agency requested us to verify the authenticity of a luxury bag."

Used luxury bags are displayed at Gugus Daejeon Timeworld branch.
[Photo by Gugus]

GUGUS forecasts that the pre-owned luxury market will continue to grow. Due to the nature of secondhand trading, even if the luxury market slows down because of high inflation, there will still be demand to sell items. The continuous price increases by luxury brands also boost the popularity of relatively reasonably priced pre-owned luxury goods.

The changing perception of pre-owned luxury trading is also positive for the demand for pre-owned luxury goods. Limited edition products from high-end luxury brands often have secondhand prices exceeding new product prices. A GUGUS representative noted, "Mainly among younger customers, the number of people seeking pre-owned luxury goods is increasing," and added, "There are many cases where customers buy pre-owned luxury goods, use them, sell them, and then purchase new pre-owned luxury items again."

As demand for pre-owned luxury goods grows, the transaction volume through GUGUS is also increasing annually. Last year, GUGUS’s transaction volume reached 215.3 billion KRW, about a 20% increase from 179.9 billion KRW the previous year. The domestic luxury market’s higher growth rate compared to the global market is also positive. A GUGUS representative said, "Already, about 15% of the overseas luxury market is occupied by pre-owned luxury goods," and predicted, "Eventually, the share of pre-owned luxury goods in the domestic luxury market will gradually increase."