Used Luxury Goods Transaction Volume Up 124% in Two Years
Due to high inflation, secondhand luxury goods are gaining popularity. While payment amounts on general luxury platforms have decreased, the transaction volume of secondhand luxury goods is showing a clear growth trend.
According to mobile big data company IGAWorks Mobile Index, the cumulative card payment amount on luxury platforms from January to August this year was 375.8 billion KRW, a 38.1% decrease compared to 606.9 billion KRW during the same period last year. Compared to 924.5 billion KRW in 2022, it has dropped by 59%.
By platform, over two years, Lianhan saw an 80% decrease, MustIt 73%, Trenbe 71%, Decode 62%, Ballan and Philway each 61%, and OK Mall 36% reduction in card payment amounts.
On the other hand, the transaction volume of secondhand luxury platforms grew sharply. The cumulative card payment amount from January to August this year was 147.4 billion KRW, a 124% surge compared to 65.8 billion KRW in 2022. During this period, secondhand luxury platforms Seek showed a 594% increase, and Gugus an 83% increase.
This result is an estimate calculated through a proprietary algorithm and may differ from actual figures or those from other research institutions.
Luxury Goods' Frequent Price Hikes Known as 'Nth Price Increase'
Frequent price hikes known as 'Nth price increase' by ultra-high-end luxury brands are also fueling demand for secondhand luxury goods.
Chanel unexpectedly raised prices on fine jewelry and watch products in August ahead of the vacation season. This is the second time this year that Chanel has increased prices on jewelry products. Specifically, jewelry prices were raised in January, beauty (perfume) in February, bags and clothing in March, making it the fourth price increase announcement this year. Chanel was the first company in Korea to initiate multiple annual price hikes known as 'Nth price increase.' During the luxury buying boom in 2022, Chanel raised prices four times in January, March, August, and November.
Louis Vuitton also raised prices again in July, five months after a price increase in February, mainly on bag products. Rolex increased prices twice this year, in January and June, citing rising gold prices. After raising prices by about 8% in January, it raised prices again by about 5% in June. Hermes joined the 'Nth price increase' trend by raising prices on some shoe products such as Royal Loafers and Oran in January, followed by a price increase on Garden Party bags in June.
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