[Luxury World] The 40 Million Won BTS Sofa That Sold Like Hotcakes... Long-Term Recession Causes Sharp Drop in Purchases

Demand for High-End Furniture Purchases Declines
Consumers Close Wallets and Preferences Become More Defined

'40 million KRW BTS sofa, 12 million KRW Suzy mirror, 20 million KRW Steve Jobs sofa.'

Premium furniture that sold like hotcakes with modifiers such as 'OOO celebrity' sofa, lighting, dining table, etc., is now facing a demand cliff. Until the first half of this year, demand for luxury furniture continued, but as the economic recession prolonged, consumers have closed their wallets on purchasing high-priced furniture.

Official importer of Italian furniture brand Cassina, Space Logic.

According to the department store industry on the 17th, the sales growth rate of high-end furniture from January to October this year slightly decreased compared to last year. In the case of Shinsegae Department Store, the high-end furniture sales growth rate, which was 37% last year, dropped to the 20% range. From January to August this year, the high-end furniture sales growth rate recorded 39%, maintaining a high growth trend, but in the second half, purchases of expensive furniture significantly decreased. Hyundai Department Store also saw a furniture sales growth rate of 18% last year, but this year it remained in the 15% range.

The regions where demand occurred were also limited. Premium furniture purchases took place mainly in commercial districts where large-scale apartment complexes are scheduled for move-in or reconstruction is underway. Department stores also strategically placed furniture brands in related stores. Last month, Lotte Department Store significantly strengthened premium furniture brands at Jamsil Branch targeting residents of Dunchon-dong Olympic Park Foret On. They introduced a global office furniture brand 'Steelcase' exclusive store, 'Edra' known for the BTS sofa, and 'Cassina,' known for the chair loved by Steve Jobs.

The department store industry cites the economic downturn as the reason for the decreased interest in premium furniture. Consumers who had opened their wallets for high-priced furniture by increasing interest in interior design since the COVID-19 period are now closing their wallets. The prices of popular furniture sold at department stores range from 10 million to 50 million KRW.

The Italian luxury furniture brand Poliform's 'Mondrian Sofa' is priced at 50.9 million KRW, and the Italian luxury brand Piavva's refrigerator costs 54 million KRW. Edra, known as the sofa of actress Son Ye-jin and singer Kai, is priced between 25 million and 30 million KRW.

Storefront view of Edra.

An official from the department store industry explained, "Until the first half of this year, demand for premium furniture seemed to continue, but it is expected to be difficult to maintain the same growth rate as last year in the second half," adding, "Due to polarization, purchases are occurring mainly among high-priced customers."

Instead, the number of consumers trying to buy trendy, mid-priced furniture that matches their tastes is increasing rather than expensive furniture. The demand to decorate homes according to personal tastes by purchasing furniture priced in the tens of thousands of KRW rather than expensive furniture costing tens of millions of KRW has grown.

In fact, according to fashion e-commerce 29CM, which curates tastes, the Danish premium furniture brand ‘Fritz Hansen’ saw a 350% increase in transaction amount over the past six months (May 1 to October 30) compared to last year. The popular product is a vase priced around 100,000 KRW. The Italian lighting brand 'Artemide' saw a 690% surge in transaction amount, with the popular product 'Nessino' lighting priced around 200,000 KRW. Shinsegae Department Store also held pop-up stores for trendy furniture brands such as Woodyk, Flatpoint, and Villarecord rather than new luxury brands this year.