Next Luxury Industry Heaven

South Korea is one of the fastest growing luxury goods market in the world after India, Malaysia and Indonesia. Being one of the leading consumer markets, the country has a lot to offer in terms of opportunities to the luxury goods companies - be it fashion or jewellery.

South Korea is one of the promising markets with high growth potential. It is an elite member of the Asian Tigers, along with Hong Kong, Singapore, and Taiwan. The economy of South Korea is the 4th largest in Asia and the 11th largest in the world, mentions Wikipedia. The country is famous for its spectacular rise from one of the poorest countries in the world to a developed, highincome country in just one generation. This economic miracle, commonly known as the Miracle on the Han River brought South Korea to the ranks of elite countries in the OECD and the G-20. South Korea still remains one of the fastest growing developed countries in the world following the Great Recession.

In November 2017, International Monetary Fund raised South Korea growth outlook to 3.2 pct from 3 pct for 2017. The IMF’s mission team in South Korea said that the outlook for Asia’s fourth-largest economy was improving despite elevated geopolitical tensions as Next Luxury Industry global demand for its information technology products supported exports growth while private consumption was picking up.

Luxury Industry in South Korea

According to Euromonitor International’s luxury goods research, South Korea’s luxury goods market is ranked 8th out of 32 countries covered by them in their research and it accounts for 3 per cent of the global market. The South Korean luxury goods market is reportedly valued at KRW13 trillion (US$11 billion at current 2016 prices), mentioned the study.

Stable income growth combined with lowincome inequality has given a boost to luxury goods spending. Also, the industrial hubs of Seoul and Gyeonggi-do have contributed to the luxury goods spending. The stable economy has led to customers preferring more uniquely designed fashion jewellery and accessories. The consumers are becoming fond of buying one-ofa- kind, luxury items to show off their wealth.

In 2015, Richemont Korea was the leadingluxury jeweller with a 34 per cent retail value share. Richemont Korea has various jewellery brands, such as Cartier and Van Cleef & Arpels.

Jongno Jewellery Market
The Jongno 3(sam)-ga Jewellery District is located in Jongno, with shops flooding the alleyways all along the main street and stretching for a length of one kilometer. It is estimated to house between 2,000 and 4,000 jewellery stores of every size and are packed close together in one district. As the district grew, retail jewellery stores both large and small populated both sides of the main street from Jonggak to Jongno 5(oh)-ga.

The jewellery street in its current form has existed since the 1960s. Even though the area has repeatedly undergone major changes to its academic and entertainment venues, the jewellery street continues to be as lively as ever. At present, about 70 per cent of the domestic jewellery market is traded on Jongno Jewellery Shopping Street.

Most of the stores in Yeji-dong deal in watches and gemstones, giving the area the name Watch Alley. The back alleys of Bongikdong and Yeji-dong are mostly filled with wholesalers whose clients consist of brokers and jewellers from around the country.

The Jewellery District is conveniently located at the center of Seoul’s major palaces and near the downtown areas. Of these, the closest tourist areas include Myeong-dong, downtown Jongro, Dongdaemun Market, and Namdaeumun Market.

Stonehenge
Another popular jewellery brand, Stonehenge was launched in 2008 with the design concept of “Simple & Pure” embodying the essence of elegance and feminine beauty. The brand is learnt to have 62 retail stores and 16 duty-free counters in South Korea. The brand is part of Woorim FMG, which has become a mainstay of Korean fashion. Woorim has diversified beyond its watch and jewellery business into the entertainment and F&B industry.

Golden Dew
Founded in 1989 as Korea’s first jewellery brand, Golden Dew is reportedly present in over 70 department stores across the country and synonymous with wedding jewellery. The company designs and retails jewellery products. It offers necklaces, earrings, pendants, rings, chains, and bracelets. In 2017, the brand was awarded ‘Brand of the year’ award at JNA Awards. The brand offers an advanced digital diamond report, powered by Sarine Profile as part of its unique instore experience. It is the first retailer in Korea to adopt the Sarine Profile. In addition to the Profile, Golden Dew was known to be implementing the Sarine Connect app across the entire chain, supporting fast, accurate search and display of diamond and jewellery inventory at the point of sale.