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    The Impact Of The Korean Market On Luxury Goods Is Particularly Obvious.

    2013/9/2 20:58:00 34

    Luxury IndustryLuxury GoodsIndustry

    < p > Korea luxury market has been regarded as the next engine in the Asia Pacific region, and it has a growth rate only behind the Chinese market globally.

    Over the past few years, global luxury brands such as Louis Vuitton and Prada (Prada) have gained "blowout" performance in the Korean market, whether they are sales or net profits.

    < /p >


    < p > a website that tracks the performance of Korean luxury brands shows that in 2011, the ten major luxury brands achieved a total sales of 18500 billion won (about 1 billion 600 million dollars) in Korea, and their net profit growth was more than 3 times in the five years.

    < /p >


    < p > but after several years of rapid development, the Korean luxury market, which is considered "good momentum of growth and no signs of recession", is in the doldrums.

    Market watchers say that the continued recession in the Korean market is reducing consumer confidence, which is particularly evident in the luxury sector.

    < /p >


    < p > < strong > second fast horses outside China, < /strong > /p >


    < p > Korea's luxury market performance exceeds many brands' expectations.

    During the financial crisis, the main luxury goods markets such as Europe, America and Japan showed stagnation or atrophy. Korea's high-end a target= "_blank" href= "http://www.91se91.com/" > clothing "/a" and accessories market showed a flourishing trend.

    < /p >


    During the period of P 2008~2009, sales of Korean department stores increased by 16.7%, which is the main channel for Korean luxury goods sales.

    According to statistics, in the five years since 2006, sales of ten major luxury brands in the Korean market increased by 190%, while net profit growth was more than 3 times.

    < /p >


    < p > in which Prada ranked third in the Korean luxury market, Prada grew most rapidly. In the five years above, sales increased from 27 billion 100 million won to 251 billion 300 million won, while the market leader Louis Weedon increased 300% to 497 billion 400 million won during the same period.

    < /p >


    In 2011, Incheon International Airport surpassed Dubai and London Heathrow airport as the world's largest airport sales of tax-free goods, attracting more and more Asian tourists, especially China.

    < /p >


    < p > according to the "2012 Global Luxury Market Research Report" jointly published by Bain and Italy Luxury Association Fondazione Altagamma, the scale of Korean luxury goods market reached 8 billion 300 million euros in 2012.

    < /p >


    < p > statistics show that 90% of Korean luxury goods are purchased by women.

    The 20~30 year old female group is a newly emerging group with strong purchasing power. They assume less responsibility and desire to define themselves through the < a target= "_blank" href= "http://www.91se91.com/" > clothes /a > another big consumer group is the "gold" mother, who is the most profitable part of the market, and their monthly average cost is twice the average of the market.

    < /p >


    Another feature of the Korean market is that the advantages of technology make e-commerce become a channel for the rise of luxury brand sales, and a high proportion of Internet users make Korea an ideal place for those brands that do not have many capital support. P

    < /p >


    < p > < strong > fall into recession < /strong > < /p >


    After several years of rapid development, the Korean luxury market is showing a downward trend. < p >

    According to Financial Supervisory Service, the sales and net profits of many luxury brands in the Korean market fell sharply in the 2012 fiscal year.

    < /p >


    Less than P, for example, in the fiscal year ending March 2013, the sales of Burberry, a luxury brand in the UK, dropped by 5.3%, while net profit plummeted by 35.1%.

    Bo Boli also said in his earnings report that the Chinese market had two digit growth in that year, while South Korea was weak.

    < /p >


    < p > other luxury brands are also losing market in Korea.

    In the 2012 fiscal year, the sales of Gucci (Gucci) in Korea decreased by 4.5%, operating profit and net profit dropped by 34.8% and 43% respectively, while the net income of Italy leather luxury brand Salvatore Ferragamo decreased by 12.8% in Korea.

    < /p >


    < p > the only sustained growth is Prada. Its net profit in the Korean market increased by 10.5% in 2012, but it was 64.2% in 2011.

    < /p >


    < p > market watchers say the downturn in the Korean luxury market is due to the continued economic recession in South Korea, which has affected consumer confidence, especially for luxury goods.

    < /p >


    The above report of Bain Altagamma and Italy Luxury Association Fondazione Altagamma also pointed out that the tense political situation at the end of 2012 reduced consumer confidence and led to a slowdown in the consumption of luxury goods. In 2013, the Korean luxury market was still full of challenges.

    < /p >

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