Korea’s younger generation driving growth of affordable luxury market

The consumption trend for affordable luxuries continues to expand among South Korea’s younger generation.

This trend is particularly noticeable in the beauty sector, where consumers can express their values, preferences, and personality at an affordable price.

Between January and June of this year, sales of luxury cosmetics at Lotte Department Store increased by 10 per cent compared to last year.

When categorized by product, sales of high-end colour makeup and niche perfumes experienced significant growth rates of 25 per cent and 20 per cent, respectively.

These figures are around four to five times higher than the overall growth rate of luxury sales.

Hyundai Department Store also reported a similar trend. During the same period, the growth rate of luxury beauty sales reached 20.1 per cent, surpassing the growth rate of overall luxury sales (6.4 per cent).

Shinsegae International, the importer and distributor of ten popular niche perfume brands, including Diptyque and Byredo, witnessed rapid growth of over 30 per cent this year.

According to market research firm Euromonitor, the “affordable luxury” market in South Korea, which includes niche perfumes, handcare products, and lipsticks, amounted to US$567 million last year, making it the second-largest market in Asia after China.

In particular, the market achieved a growth rate of 26 per cent last year, the highest in Asia.

  • This story was originally published by Ashley Song, via Korea Bizwire.

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