Findings:
South Korea's e-commerce market is booming, exceeding $171.1 billion in 2023.
South Koreans have the highest per capita spending on luxury goods globally at $325 per year.
The Korean resale market is rapidly growing, with online resale being the dominant channel.
Luxury resale is experiencing strong growth, driven by factors like rising prices, scarcity, and sustainability concerns.
Classic luxury goods and quiet luxury brands are popular in womenswear, while Gen-X men are emerging as significant consumers in the luxury resale market.
The secondhand luxury childrenswear market is also expanding, fueled by Millennial parents' desire to provide their children with luxury brands.
Key Takeaway:
The confluence of e-commerce growth, high luxury consumption, and sustainability concerns is driving the rapid expansion of the luxury resale market in South Korea.
Trend:
The significant trend is the increasing popularity of luxury resale, driven by economic factors, sustainability concerns, and a desire for unique and timeless pieces.
Consumer Motivation:
Affordability: Rising prices of luxury goods are making resale an attractive option for consumers.
Scarcity: Resale platforms offer access to rare and exclusive items that may be difficult to find in the primary market.
Sustainability: Consumers are increasingly prioritizing sustainable consumption habits, and resale aligns with this trend.
Driving the Trend:
Economic challenges: Rising prices and inflation are pushing consumers towards more affordable options like resale.
Changing consumer values: Sustainability and conscious consumption are becoming increasingly important to consumers.
E-commerce growth: The convenience and accessibility of online resale platforms are facilitating the growth of the secondhand market.
Target Audience:
The report primarily focuses on South Korean consumers, particularly those interested in luxury goods and sustainable fashion choices.
Products/Services:
The report highlights various product categories within the luxury resale market, including womenswear, menswear, and childrenswear.
It also mentions specific brands and items popular on the Bunjang platform, such as The Row, Loro Piana, Chanel, Dior, Balenciaga, Cartier, Bulgari, and luxury sneakers.
Consumer Age:
The report mentions different generations and their preferences in the resale market:
Gen Z and Millennials: Active participants in the luxury resale market, particularly interested in sneakers and brands like Prada.
Gen-X men: Emerging as a significant consumer group in luxury resale, showing a preference for brands like Balenciaga, Cartier, and Bulgari.
Millennial parents: Driving the growth of the secondhand luxury childrenswear market.
Women over 45: Showing a preference for classic luxury brands like Louis Vuitton and Chanel.
Conclusions:
The Korean luxury resale market is poised for continued growth, driven by economic factors, evolving consumer values, and the convenience of online platforms. Brands and retailers need to adapt to this trend by offering authentication services, embracing sustainable practices, and catering to the diverse preferences of different consumer segments.
Implications for Brands:
Luxury brands should consider entering the resale market to capture additional revenue and control their brand image in the secondhand space.
Brands should prioritize sustainability and transparency to appeal to conscious consumers.
Understanding the preferences of different consumer segments, such as Gen-X men and Millennial parents, can help brands tailor their offerings and marketing strategies.
Implications for Society:
The growth of the luxury resale market can contribute to a more sustainable and circular fashion industry by extending the lifecycle of products and reducing waste.
It can also make luxury goods more accessible to a wider range of consumers.
Big Trend Implied:
The big trend implied in the report is the shift towards a more conscious and sustainable approach to consumption, driven by economic factors, environmental concerns, and a desire for unique and timeless products. This trend is likely to continue shaping the retail landscape in the coming years, with resale playing an increasingly important role.
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