How ‘groupist culture’ and social media are fuelling South Koreans’ craze for luxury goods
- South Koreans have become the biggest spenders on luxury goods per capita, overtaking markets in China and the US
- In Korean society where displaying wealth is sometimes encouraged, experts say ‘people care about how others view them’
Now, Koreans have become the biggest spenders on luxury goods per capita, outgrowing markets in China and the US. Total personal luxury goods spending by Korean nationals increased 24 per cent to 21.8 trillion won (US$16.8 billion), or about 400,000 won (US$325) per person in 2022, according to a recent study by Morgan Stanley.
Even though luxury goods have been considered a preserve of millennials and Gen Z, who are commonly called “Generation MZ” in South Korea, have recently emerged as a notable consumer demographic to lead this market boom.
“I bought my first luxury bag in my 20s when I got my first salary. I thought there will be occasions when I need a good bag as I started my career. I have regularly bought luxury bags, both high and moderately priced, once or twice a year since then,” Jang, a 32-old-year office worker based in Seoul told The Korea Times.
“I know it’s expensive for my salary, but they give me confidence. I consider it as a gift to myself who worked hard day and night,” Jang added.
According to Shinsegae, Generation MZers accounted for almost 40 per cent of total luxury sales in 2021. Luxury goods purchases by customers in their 20s doubled every year, far exceeding overall luxury sales growth since 2016, while customers in their 30s became the largest contributor to luxury sales, according to Morgan Stanley.
