South Korea Luxury Goods Market to Grow at a CAGR of 4.6% During 2024-2032, Aided by the Expansion of Retail Outlets to Verify Product Authenticity and the High Living Standards of the Population

The South Korea luxury goods market growth is driven by the expansion of luxury stores such as boutiques and shops leveraging online platforms to verify the authenticity of luxury products and provide improved customer services. Luxury goods hold cultural significance despite their non-essential nature. Demand for luxury items correlates with rising income, often representing status and wealth. While affluent women in their 40s to 60s have historically been core luxury consumers in Korea, younger demographics in their 20s and 30s are now key markets. Major department stores like Lotte, Shinsegae, and Hyundai dominate luxury sales. South Koreans lead global luxury spending, averaging 325 USD per capita in 2022—higher than the US at 280 USD and China at 55 USD.

Fig: Companies Share of Luxury Goods Sales in Developing Regions, FY2022

Three dominant companies—Hugo Boss (Germany), Pandora (Denmark), and Amore Pacific (South Korea)—capture 62% of the luxury goods market in developing countries. Notably, Germany, Canada, and Brazil each host two companies within the group. Among the Top 100 companies, Aritzia experienced the highest year-on-year sales growth at 74.3%. Other notable performers include Canada Goose, Soma, Marc O’Polo, Hugo Boss, and Vivara, all achieving sales growth exceeding 25%.

Luxury manufacturers are prioritising eco-friendly practices to meet the demand for sustainable luxury goods and fulfil social responsibilities. The luxury fashion sector, particularly in South Korea, is transitioning toward fashion tech, incorporating eco-friendly approaches to enhance sustainability and the shopping experience. Digital platforms are expanding reach, enhancing customer service, and facilitating the development of new luxury products, driving growth in South Korea's luxury market.

The fashion industry in South Korea is embracing sustainable practices and innovation through biomaterials. Companies like Kaesa are leading the way with vegan leather handbags made from cactus-based materials, offering cruelty-free and eco-friendly alternatives that reduce carbon footprints and support conservation efforts.

The South Korea luxury goods market is witnessing a surge in vintage products and a rise in conscious, ethical fashion. Consumers are embracing recycling, thrifting, and upcycling, promoting sustainability and reducing carbon emissions. Vintage luxury items like bags and watches are gaining popularity, prompting high-end brands to relaunch vintage collections to captivate customer interest and propel growth in the South Korean luxury market.

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Market Breakup by Product, End User, and Distribution Channels:

• Based on product, the market can be divided into watches and jewellery, leather goods, perfumes and cosmetics, clothing, and eyewear, among others.

• The market is segmented based on end user into women and men.

• By distribution channels, the market is segmented into offline and online.

Key Findings of the Report:

• The South Korea luxury goods market is driven by the expansion of retail stores such as department stores, boutiques, and shops, leveraging online platforms. These stores utilize advanced technologies like AR, VR, and touchless payments, among others to enhance shopping experience of customers.

• Luxury brands are exploring biomaterials not only for apparel and footwear but also for cosmetics and beauty products, aiming to minimize environmental impact and promote sustainable production.

• The growing demand for vintage products and a rise in conscious, ethical fashion in South Korea is driving the market.

Key Offerings of the Report:

• The EMR report gives an overview of the luxury goods market in South Korea for the periods (2018-2023) and (2024-2032). 

• The report also offers historical (2018-2023) and forecast (2024-2032) market information for the product, end user, and distribution channels of luxury goods.

• The report analyses the market dynamics, covering the key demand and price indicators in the market, along with providing an assessment of the SWOT and Porter’s Five Forces models.

The major players in the South Korea luxury goods market are LVMH Moët Hennessy, Compagnie Financière Richemont SA, Kering Group, The Swatch Group Ltd, ROLEX SA, Minjukim, Guccio Gucci S.p.A., Chanel, and Prada S.p.A, among others. The comprehensive report by EMR looks into the market share, capacity, and latest developments like mergers and acquisitions, plant turnarounds, and capacity expansions of the major players.

Key Highlights of the Report

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