Selling Like Hotcakes Instead of Luxury Bags... 'Small Luxury' Sales Soar Despite the Recession

Shinsegae International Operates Diptyque, Loewe, Hourglass, and More
Pursuing Psychological Satisfaction at Lower Cost
Recession-Driven Consumption on the Rise

Shinsegae International announced on August 22 that sales of small luxury items such as niche perfumes, luxury cosmetics, and high-end shampoos have surged. This trend is attributed to the expansion of recession-driven consumption, where consumers seek psychological satisfaction at a relatively lower cost instead of purchasing expensive luxury bags or clothing.

Shinsegae International operates popular niche perfume brands such as Diptyque, Santa Maria Novella, and Loewe Perfumes; luxury makeup brands including Hourglass, Laura Mercier, and Dolce & Gabbana Beauty; as well as premium hair care brands like Davines and Oribe.

Among these, demand for niche perfumes, which are representative of small luxury, has been soaring each year. The ultra-premium luxury niche perfume brand EX NIHILO has recorded explosive growth, with this year’s sales increasing by 120% compared to the same period last year. Founded in Paris, France in 2013, EX NIHILO is renowned for creating unique fragrances using only the finest ingredients without regard to cost.

Its flagship product, "Blue Talisman Eau de Parfum," has maintained its bestseller status both domestically and internationally since its launch in 2023. Recently, this product gained further popularity after going viral on social networking services (SNS) as "the scent of a fatal New Yorker," resulting in a sharp increase in sales. Characterized by a neutral scent that harmonizes sweet pear with musk and amber, it enjoys great popularity despite its high price of around 400,000 KRW for 100ml. Hand creams and discovery sets featuring the same fragrance are also recording strong sales.

The French luxury niche perfume brand Memo Paris is also experiencing double-digit sales growth every year. The brand is famous for creating delicate and beautiful scents inspired by travel destinations, using rare and premium ingredients from those regions. Signature products include "Inle Eau de Parfum," inspired by the fresh morning air of Inle Lake in Myanmar, and "Ithaque Eau de Parfum," which draws on the adventures of the Greek mythological hero Ulysses. Riding on this popularity, the brand plans to launch a limited edition in collaboration with a renowned French artist at the end of next month.

Luxury cosmetics are also maintaining steady growth despite the economic downturn. Dolce & Gabbana Beauty saw its sales rise by 157% year-on-year, driven by the popularity of its signature glamorous and sensual perfumes and makeup products. Both its flagship fragrance lines, such as Light Blue, and its makeup collections are enjoying robust sales.

The number of consumers seeking high-end hair care products has also increased significantly. Italian salon professional hair care brand Davines achieved a 42% increase in sales this year. Its best-selling product, "Energizing Shampoo," leads the brand's growth, recording the highest sales despite its high price of around 120,000 KRW per 1,000ml bottle. As it is mainly used in high-end hair salons, it is affectionately nicknamed "Cheongdam-dong Shampoo" and is loved by many consumers.

A Shinsegae International representative stated, "The 'lipstick effect,' where lipstick sales increase during economic downturns, is now expanding into various categories such as perfumes, cosmetics, and hair care. In addition to our current popular brands, we will continue to discover and introduce new brands that are not yet known in Korea."