With Corona 19, which continued from the beginning of the year, the global distribution industry has been hit directly. As social distancing has been prolonged, people have seen their overall consumption shrink, such as closing their wallets. However, in this situation, sales have increased and there are some places that are really booming. It’s the luxury market. The economy is bad, but some people may find it strange to buy luxury goods. On today’s HS Ad blog, let’s talk about the post-Corona era, why the luxury market has been activated, and the stories of those who have emerged as big players!
The consumption of luxury goods has increased with Covid-19?!
The total sales of the three department stores in Korea decreased from the previous year, but the sales of luxury goods increased by 15.1%. Recently, there was an open-run chaos in front of the department store luxury hall, where customers lined up for a long time even before the opening. So, why is the consumption of luxury goods increasing?
Many experts cited retaliatory consumption, where suppressed consumption needs were unleashed. People who are tired of home cock are changing their mood by purchasing expensive items because they cannot go out comfortably due to the prolonged Korona19. In addition, it seems that they have begun to reach out to luxury goods, which were difficult to purchase due to the savings in travel funds they had saved due to blocked overseas travel.
▲ Tiffany & Co. (Source: Kakao Commerce) has opened an official brand store for Kakao Talk as a gift.
I usually bought luxury goods at local or airport duty-free shops while traveling abroad. The non-face-to-face luxury shopping is also playing a major role in increasing luxury goods consumption. In addition to its online shopping mall, a new luxury theme was created for Kakao Talk gifts, making it easy to browse and purchase more than 20 luxury brands such as Gucci, Prada, and Tiffany & Co.
Meanwhile, with the development of SNS, the culture of wanting to be recognized for one’s own personality has expanded to the luxury shopping sector. The consumption needs and flex culture, which were suppressed by Corona 19, such as the consumption trend of Gashimbi, which seeks satisfaction with the price, and FLEX consumption, which shows off their wealth on SNS, seem to be prominent.
The big hands that come to mind, Generation MZ?
According to a survey by Smart Student Clothing, 56.4% of teenagers with experience in purchasing luxury goods, more than half of them. luxury goods that were considered exclusive property of the middle-aged However, those who recently made sales of luxury goods were in their teens, 30s, and MZ generation. In fact, you can easily access related contents such as luxury shopping haul and luxury hashtag on SNS such as YouTube and Instagram. And the main consumer of this content is also the MZ generation. They are used to buying luxury goods by obtaining information and tips on luxury goods through SNS.
▲ If you search for ‘Luxury Howl’, you can see various YouTube contents and high views.
The MZ generation tends to be different from the existing generation. I’m paying attention to Lysel, which focuses on experience rather than possession, and saves money by selling luxury goods back to secondhand transactions. Luxury goods are the object of investment, not luxury. We are willing to spend time and money knowing the value of luxury, limited edition scarcity.
According to Lotte Department Store’s overseas luxury sales survey, the ratio of MZ generation’s luxury goods purchases in 2018 was 38.1%, but it increased to 46% in 2020. As the MZ generation continues to pay attention to luxury goods, luxury brands, including department stores, are captivating them in various ways.
MZ Generation Sniper Luxury Market
The digital native generation, who are more familiar with online and mobile environments, also shop for luxury goods.
With the activation of online luxury sales platforms, online luxury goods consumption is increasing. The entry of luxury brands into Kakao Talk gift-giving services is also one of the ways to attract MZ generation consumers. Each brand also plans to use its online platform to exchange luxury gifts during special seasons such as birthdays, Coming-of-Age Day, and graduation.
Meanwhile, 레플리카 luxury brands have entered the virtual reality market, such as hot games and avatars, to create an intimate image for the MZ generation. Gucci collaborated with Geppetto to release a new collection. It showed new aspects such as putting new costumes on the avatar model, hosting a fashion show, and using a world map space containing Gucci’s identity. It consists of products that can be purchased at the actual store, and various fashion items such as clothes, bags, and hats are introduced in a special way, increasing the brand’s charm.
Department store companies are introducing exclusive memberships for 2030 to lower VIP entry barriers, strengthening exclusive cafes, birthday celebration benefits, and luxury lineup. Recently, “The Hyundai Seoul,” which opened at Hyundai Department Store, has also emerged as a hot place for MZ generation by decorating lounge spaces with hot restaurants and cafes gathered together and designed to target them.
The MZ generation has emerged as a big hand in the current era among future customers of the luxury market. This phenomenon is expected to become more active than a new culture, not a flash of consumption caused by Covid-19. The competition between the MZ generation, who willingly open their wallets for their own satisfaction, and luxury brands to capture them is expected to become fiercer in the future. With the entry barrier to luxury goods being lowered, what other services will be activated?