South Korea has established itself as a promising market for luxury brands and is fast catching up with China and Japan. South Korea’s increasing prosperity has attracted significant investment, encouraged by free trade agreements with the European Union. The growing purchasing power of citizens is also a driving force for the country’s luxury market.
Louis Vuitton, one of the luxury brands betting on South Korea, has chosen Seoul as the setting for its pre-fall show, which will take place on April 29. The brand has signed a partnership agreement with the Korea Tourism Organization and the Seoul Metropolitan Government to promote and increase tourism in South Korea and capitalize on the strong connection between luxury and the K-pop universe. This partnership is part of the Visit Korea Year 2023-2024 tourism initiative launched by the South Korean government to attract more visitors to the city.
Louis Vuitton’s fashion show will be held on Jamsugyo Bridge overlooking the Hangang River, which is a landmark of the city. The brand has also created a digital travel guide about Seoul and the Han River, which will be available on its City Guide app. Louis Vuitton enlisted the creative advice of Hwang Dong-Hyuk, director of the famous TV series “Squid Game”, for the scenography of the event, which is expected to welcome over 1,600 guests.
The luxury market in South Korea is growing rapidly and luxury brands are taking note. According to a report by Euromonitor International, the luxury goods market in South Korea will grow at a compound annual growth rate of 6.2 percent from 2020 to 2025. According to investment bank Morgan Stanley, South Korean spending on personal luxuries rose 24 percent to $16.8 billion in 2022, or about $325 per capita.
Strong cultural influences
South Korean culture, especially K-pop and Korean TV shows, has had a significant impact on fashion and beauty trends around the world. This has helped increase the popularity of luxury brands in South Korea and may continue to fuel demand in the future.
Local luxury suppliers
The luxury retail industry in South Korea is highly competitive and includes a variety of local and international players. The country’s best-known luxury retailers include Lotte, Hyundai Department Store, Shinsegai, Galleria and AK Plaza. Smaller fashion stores include Rare Market, Boon the Shop and W Concept. These retailers offer a range of high-end brands, from fashion collections and collaborations to accessories, beauty and skincare products. In recent years, South Korea has also seen an increase in the number of luxury pop-up stores and concept stores, catering to the growing demand for unique and exclusive shopping experiences.
The leading luxury brands in South Korea are Louis Vuitton, Hermès and Chanel, which together generated sales of almost 4 trillion won (around 2.7 billion euros) in Korea in 2022, 22 percent more than in the previous year. Due to the strong cultural influence, increasing prosperity and strategic location, South Korea is expected to continue to be an important market for luxury brands in the future.
This translated article originally appeared on FashionUnited.uk.