"Now Is the Cheapest Time" 20s and 30s Doing 'Luxury Asset Management' [Heo Midam's Youth Report]

Increased Luxury Consumption Among 20s and 30s
"Luxury Purchases Are Not Consumption but Investment" ? Luxury as a Financial Tool
Experts Say "Young Generation Buys Luxury to Escape Harsh Reality"

Chanel store. The photo is unrelated to specific expressions in the article. [Image source=Yonhap News]

[Asia Economy Reporter Heo Midam] [Editor's Note] How is your youth remembered? From teenagers to college students and office workers, we deliver the joys and sorrows unique to 'youth.'

"Luxury goods are cheapest when you buy them now.", "Owning luxury goods is profitable in itself."

Recently, as young people have emerged as major players in the luxury market, more youths are entering the resell market. They buy expensive luxury or rare products and sell them at a premium. In other words, they use luxury goods as a kind of financial investment to make a profit. Experts analyze that resell transactions can satisfy young people's desire for showing off as well as economic benefits.

Office worker Jeong Mo (31) recently purchased luxury sneakers worth about 1 million won. Jeong said, "As acquaintances started buying luxury goods one by one, I felt I should have at least one luxury item. Also, I thought it was better to use one expensive product for a long time than to buy several cheap ones, so I bought luxury sneakers." He added, "Saving money doesn't necessarily make you rich. I think it's okay to spend this much for my happiness."

Like Jeong, the number of young people buying products from luxury brands has been increasing every year. According to Lotte Department Store, the proportion of people in their 20s and 30s in luxury sales rose from 38.2% in 2018 to 41.4% in 2019 and 44.9% in 2020.

The photo is unrelated to specific expressions in the article.

Along with this, the number of young people entering the resell market is also on the rise. College student Im Mo (27), who has experience buying limited edition sneakers on secondhand trading sites, said, "I once paid several times the original price to buy shoes from a collaboration between Nike and singer G-Dragon. At the time, I hesitated whether to buy them or not, but in the end, I think I made a good purchase." He added, "I believe the price will go up if I keep them. Especially sneakers have a fan base, so even if the price is high, they sell faster than other items."

The way products are traded is simple. Sellers upload resell products along with receipts on online secondhand trading sites or personal SNS accounts. When someone interested contacts them, the transaction happens immediately.

In summary, the trading method is simple, and the psychology that once you buy, you can resell at a higher price someday is increasing young people's desire for resell.

In fact, despite the economic downturn caused by COVID-19, popular high-end luxury items like Chanel and Hermes often suffered from product shortages. As a result, some customers lined up in front of stores for 'open runs' (rushing to buy items as soon as the store opens). This is related to the advantage of buying popular products early to gain scarcity value and price differences.

One netizen posted a photo of a Chanel bag on an online community, saying, "'The luxury goods you buy today are the cheapest.' Luxury prices keep rising, so it's better to buy as soon as possible." He added, "Luxury goods remain luxury goods over time. That's why people say luxury goods are a form of investment."

Experts analyze that young people buy luxury goods for showing off and investment purposes. Professor Lee Eunhee of Inha University's Consumer Psychology Department explained, "Even those with financial means sometimes cannot buy luxury goods because they don't have time to line up in front of stores. Instead, young people with more free time buy luxury goods for resell purposes."

She continued, "Especially young people who are active on SNS often show off rare luxury products on their SNS before reselling them. Ultimately, by reselling, they can satisfy their desire to show off."

Professor Lee added, "The economic situation is not good in many ways, with rising real estate prices and increasing wealth polarization. In such circumstances, young people experience feelings of frustration. However, owning luxury goods allows them to momentarily forget the hardships of reality and gain psychological satisfaction."

This content was produced with the assistance of AI translation services.