Market Size of South Korea Luxury Goods Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 4.82 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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South Korea Luxury Goods Market Analysis
The South Korea luxury goods market is projected to register a CAGR of 4.82 % during the forecast period, 2022-2027.
A major share of revenue generated by luxury goods in South Korea came from brick-and-mortar shops in the pre-pandemic era. After the rapid spread of the coronavirus in 2020, the country faced lockdowns, and hence, the closure of shops including specialty stores and other luxury goods stores adversely affected the high-end products market in South Korea. However, the halt in sales due to the pandemic allowed the companies to plan and diversify their distribution strategies as they understood the drawbacks of using brick and mortar as the main sales channel with the commencement of COVID-19.
The players in the market began to narrow the buyer-seller divide, and the majority of the players began establishing their digital channels in 2021 to sustain themselves in the market in long run. For instance, in April 2021, Shinsegae Group, South Korea's largest retail group launched an e-commerce platform called SSG.com to market luxury goods. Additionally, online channels have helped in the post-pandemic sales recovery in South Korea's luxury goods market.
In the medium term, the market growth can be attributed to the rising number of online shoppers as consumers now easily obtain product-related information and prices online due to the growth of e-commerce. Different celebrities like K-pop stars have a huge influence on the young population in the region. Hence, the promotion and advertisements of luxury goods featuring such celebrities also help in driving the luxury goods market in South Korea. Consumers in South Korea are quite selective when it comes to their purchases of high-end products, such as cosmetics and fragrances. As a result, the businesses competing in the market are enhancing their ecological packaging designs.
