Despite a worldwide economic recession, the luxury market is enjoying rapid growth in Korea.
This spring, three high-end jewelry brands, Tiffany, Van Cleef & Arpels and Cartier, held competing exhibitions in Seoul. These events, held in an art gallery, a department store and a national museum, were crowded with wealthy women and art connoisseurs. Koreans heartily embrace Western luxury brands:
- Van Cleef & Arpels’ sales increased by 130% from 2006 to 2007.
- Chaumet’s sales have increased as much as 500% since 2000.
- Tiffany’s sales grow 10-15% every year.
- In one day in 2007, Audi Korea sold 20 units of the R8 luxury sports car, which was all the units allocated to the country for that year.
- Premium home appliances such as Bang & Olufsen audio, Boss home theater and the De’Longhi espresso machine also show a steep rise in sales.
Rich Koreans are spending more on luxury products and services, while middle-class and poor Koreans worry about rising inflation and food prices. This ongoing socio-economic polarization raises concerns that Korea could be divided into three: North Korea, Rich Korea and Poor Korea.
Jeongmae Choi