[theqoo] KOREA IS THE NUMBER 1 SPENDER ON LUXURY GOODS... BECAUSE OF THE DESIRE TO SHOW-OFF

- Total spending on personal luxury goods by South Koreans year-on-year grew around 24% to $16.8 billion, amounting to $325 per capita.

- Morgan Stanley analysts explained the demand for luxury goods among South Korean buyers is driven both by an increase in purchasing power as well as a desire to outwardly exhibit social standing.

- The investment bank also noted luxury houses have tapped Korean icons to further catalyze demand.

Whether it’s calf-leather Italian Prada bags or classic, checkered British Burberry trench coats, South Koreans are the world’s biggest spenders on personal luxury goods per capita, Morgan Stanley said.

The investment bank estimated South Korean total spending on personal luxury goods grew 24% in 2022 to $16.8 billion, or about $325 per capita. That’s far more than the $55 and $280 per capita spent by Chinese and American nationals, respectively, according to Morgan Stanley estimates.

Luxury brands have also highlighted strong sales in Korea.

Moncler said its revenue in South Korea “more than doubled” in the second quarter compared with before the pandemic. Cartier-owner Richemont Group said Korea was among the regions where sales grew by double digits in 2022, compared with both a year and two years ago.

While Prada said China lockdowns contributed to a 7% decline in 2022 retail performance, the fashion house said the drop was “mitigated by the strong performance in Korea and South East Asia.”

Morgan Stanley analysts explained the demand for luxury goods among South Korean buyers is driven both by an increase in purchasing power as well as a desire to outwardly exhibit social standing.

“Appearance and financial success can resonate more with consumers in South Korea than in most other countries,” analysts wrote in the report.

Displays of wealth are also more socially acceptable in Korean society. A McKinsey survey found that only 22% of Korean respondents consider showing off luxury goods to be in bad taste, compared with 45% of Japanese and 38% of Chinese. (...)

CR: CNBC

original post: here

1. We can't even bash China for wanting to show off anymore... Even in our country where unemployment is so high among the youth, the influence on them is huge because of the internet and community sites.... I feel that there are so many people who are swept away by herd mentality

2. It's true that it's strange

3. But seeing the people around me, the less they make and the worse their financial situation, the more they have a desire to flex. It's like they are struggling not to be looked down upon

4. Oho... interesting. It's like they are talking about a whole different world. Maybe because I don't care about luxury goods... Anyways, it's not like I had the money to afford them either ㅋㅋㅋ

5. I don't think that I can buy a bag that's shamelessly copying the design of a luxury bag even if the price is more reasonable... so I'm contemplating buying the real one..

6. Seems like everyone has money except me

7. I bought my first luxury good in my 30's... and it was a perfume...

8. I've never bought any.. who even lives like this?... Fascinating...

9. Insta plays a big part in this. Nowadays, you need to have luxury goods in order to get more likes and you might even receive sponsorships and can become an influencer. I went to the Gucci store not long ago and most of the customers were in their early 20's. I was shocked

10. We're seriously becoming more and more similar to China

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