Asian countries have long been major consumers of luxury goods. But the one that leads in terms of spending is South Korea. As a result, South Koreans’ spending on luxury goods increased by about 24% in 2022, reaching $16.8 billion, or $325 per capita.
According to analysts from the US bank Morgan Stanley, who looked at global spending on luxury goods, South Koreans stand out as the world’s biggest spenders on products per capita. This buoyant demand for luxury goods is explained both by an increase in their purchasing power and by the desire to display social status.
The investment bank estimated that the country’s total spending on personal luxury goods increased by 24% in 2022 to $16.8 billion, or $325 per capita. That’s far more than the $55 and $280 per capita spent by Chinese and American nationals.
This luxury craze is more than beneficial for brands. Moncler said its revenue in South Korea more than doubled in the second quarter of 2022 compared to 2020. And for the Richemont Group, which owns Cartier and Van Cleef & Arpels, among others, the Southeast Asian country is among the regions with a significant sales increase in 2022.
Luxury = financial success?
Featured photo : © Press