South Korea, the Country With the Highest Per Capita Luxury Goods Consumption

Spending By Foreigners At The Top Three Department Stores In Korea More Than Tripled Compared To Last Year

It has been revealed that the foreigners’ spending at the three major department stores in South Korea (Lotte Department Store, Shinsegae Department Store, Hyundai Department Store) has increased by over three times compared to last year.  The reason behind foreigners’ luxury shopping at South Korean department stores is the rising significance of the market among international luxury brands. Korean department stores’ luxury sections are renowned for swiftly introducing new products.

As a result, luxury brands are prioritizing South Korea as part of their enhanced strategies, promptly launching new products in the country. There’s also a growing trend of Korean idols and actors becoming ambassadors for luxury brands, which positively impacts the luxury sales in Korean department stores. Many customers now associate specific brands with Korean celebrities like BLACKPINK’s Jennie and NEWJEANS’s Danielle.

Last month, the nationality of foreign customers visiting the luxury section of Seoul’s Apgujeong Galleria was predominantly Chinese, followed by Thai and American visitors. The weakening of the Korean won(₩) against the US dollar($) also played a role. Koreans’ per capita spending on luxury items stands at $325, surpassing that of the United States ($280) and Japan ($210), thus claiming the top spot globally (data from 2022).

Despite economic downturns, the significant sales of luxury items indicate South Korea’s materialistic aspect, demonstrating the desire to showcase the ability to afford premium products even in challenging circumstances.

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