Can you guess which country spends the most on luxury goods?
Luxury products have long been a popular buy for customers all over the world, from Chanel bags to Rolex watches, and this trend shows no signs of slowing down.
Although spending on luxury goods has increased across the globe, South Korea is now the nation with the highest per-capita luxury goods expenditure.
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That’s a significant increase over the €46 and €234 that Chinese and Americans spend per capita, respectively.
The increase in spending power and the desire to flaunt social status are two reasons for the booming demand for luxury products.
Displaying wealth is more socially acceptable in Korean culture. Only 22% of respondents in a McKinsey survey said that showing off expensive items is in poor taste, compared to 45% of Japanese and 38% of Chinese respondents.
The COVID-19 pandemic has increased the South Korean luxury market’s ongoing, steady expansion in recent years. Luxury brands’ online sales have significantly increased as more consumers choose to purchase online.
The South Korean luxury frenzy is extremely advantageous for firms. For instance, Moncler said that, when compared to the second quarter of 2020, their income in South Korea more than doubled. Similar to this, sales in the Southeast Asian nation have significantly increased for the Richemont Group, which includes brands like Cartier and Van Cleef & Arpels among others.
Luxury businesses are leveraging South Korea’s enormous entertainment industry in addition to the country’s expanding luxury market to increase sales.
A prime example of this is the recent appointment of BTS star Jimin as a global brand ambassador for Dior.
Dior announced the partnership with Jimin via social media last month, stating that the appointment of the BTS star “solidifies” his friendship with the French label, and “continues a bond” with the artistic director of menswear, Kim Jones.
Kim Jones has previously designed stage outfits for the K-pop band, further strengthening the relationship between Dior and Jimin.