- Global luxury brands are focusing their attention on the South Korean market.
- LVMH and Kering Group are competing to become the dominant force in South Korea's premier tourist spots.
- The success of K-content throughout Asia has enabled Korea to become a significant player in the worldwide luxury market.
LVMH and Kering Group, the world's top luxury goods companies, are vying for prominence in South Korea through their flagship brands, Louis Vuitton and Gucci.
LVMH owns brands such as Louis Vuitton, Dior and Fendi, while Kering is the parent company of Gucci, Saint Laurent and Bottega Veneta.
In 2021, the South Korean luxury goods market was estimated to be worth approximately KRW 17tn ($14.7bn), a 4.4% increase from the previous year.
In comparison, LVMH saw global revenue of $23.4bn in the first quarter of 2023 alone. Kering’s Q1 revenue was $5.6bn.
South Korea has become the focus of attention for global luxury brands in recent years, who compete to dominate South Korea's major tourist attractions.
LVMH rented out the Some Sevit floating islands in Seoul’s Han River for its pre-fall fashion show. This Louis Vuitton show marks the first time that womenswear creative director Nicolas Ghesquière will officially be seen in Korea.
Additionally, Kering has recently announced that an exclusive event at Gyeongbokgung Palace will take place next month. It has been 25 years since Gucci opened its first store in Seoul in 1998. The luxury brand will make a remarkable return with its upcoming show.
South Korea is believed to be the seventh largest luxury goods market in the world. Research from US investment bank Morgan Stanley shows South Koreans spend around $325 per capita on luxury items yearly, on average.
Korea has become an influential force in the global luxury market, mainly due to the popularity of K-content across Asia, including China, which has spurred the Hallyu wave.
With such developments, investors interested in the luxury goods market will be turning their attention to the South Korean luxury market. Making overseas purchases will require a safe money transfer method to ensure their funds reach their destination securely.
Individuals and businesses need to have access to reliable and cost-effective international payments services to manage their investments effectively, especially as additional brands enter the market.
For example, Thom Browne, which has only been available through Samsung C&T's fashion division to date, is set to enter the Korean market in July with the creation of its Korean subsidiary, Thom Browne Korea.
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