Korea's Luxury Market Ranks 7th Worldwide... Grows to 16 Trillion Won Despite COVID-19

[Asia Economy Reporter Jo In-kyung] This year, South Korea's luxury market was estimated to be worth 16 trillion won, ranking 7th in the world.

According to market research firm Euromonitor on the 11th, the global luxury market this year reached $349.559 billion (approximately 391.86 trillion won), showing a 13.3% growth compared to last year ($308.6617 billion).

This rapid recovery of the luxury market was influenced by the rebound in consumer spending in major countries such as China despite the economic crisis caused by COVID-19.

By country, South Korea's luxury market recorded $14.1657 billion, about 15.881 trillion won, ranking 7th worldwide. It maintained solid growth with a 4.6% increase from last year's $13.5397 billion, 15.179 trillion won.

The top country in the luxury market was the United States, recording $70.4 billion (about 79 trillion won). Following were China with $58 billion (65 trillion won), Japan $28.1 billion (32 trillion won), France $20.5 billion (23 trillion won), the United Kingdom $19.1 billion (21 trillion won), and Italy $16.2 billion (18 trillion won).

In the domestic luxury market, all categories including leather goods, which were previously popular products, as well as clothing, footwear, jewelry, and watches showed balanced growth. By category, the luxury clothing and footwear market was the largest at 4.819 trillion won, and leather products recorded 4.188 trillion won. The luxury cosmetics market slightly decreased from 2.818 trillion won to 2.787 trillion won, but among them, premium perfumes and hand creams actually showed an increase.

Hong Hee-jung, Chief Researcher of Euromonitor's Beauty and Fashion division, said, "The new trends in the luxury market include 'small luxury,' which was popular even before COVID-19, 'revenge consumption' that rapidly emerged after the pandemic, and the so-called 'selective luxury,' where consumers want to be naturally noticed by others." She added, "As the scope of selective luxury expands from fashion accessories, watches, and lipsticks to hand creams, it is expected to be a major trend leading the luxury market in the coming years."

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