In the ever-evolving world of luxury, I’ve always kept a keen eye on South Korea, a vibrant market whose influence has resonated deeply since the mid-1990s, initially through cosmetics and subsequently in the realm of fine wines. South Korean consumers, renowned for their passion for skincare brands and fine wines, have historically exemplified aspirational luxury consumption.
However, economic slowdown has significantly shifted consumer priorities. A fascinating study on luxury trends in South Korea highlighted an insightful observation: “This shift in consumer behavior reflects a trend toward more affordable indulgences. Instead of purchasing expensive handbags and clothing, many consumers are opting for smaller luxuries like lipstick and eyeshadow. This trend toward ‘small luxury’ is continuing as the recession deepens.” This is not merely a South Korean phenomenon. Globally, luxury brands are becoming increasingly attractive to consumers looking for modest yet meaningful treats amidst financial uncertainty.
Opting for smaller luxuries has also catalyzed another major trend: the rise of resale markets. They have surged in popularity as consumers increasingly value affordability but also sustainability and authenticity. Platforms specializing in luxury resale have become essential intermediaries, offering carefully curated selections of pre-owned luxury items at more approachable price points. This trend supports a circular economy, reduces waste, and extends the lifecycle of luxury products, resonating deeply with environmentally conscious younger consumers who seek to align their purchasing habits with their personal values. And also seek lower prices…
Whether in South Korea or the rest of the world, today’s consumers evaluate luxury differently, considering price through multiple lenses: the intrinsic quality of the product, the unique experience offered, the brand’s commitments, and the degree of personalization available. Luxury brands responding successfully to this shift have created “access products”, that condense the best of the brand’s quality at a competitive yet non-devaluing price point. This is certainly food for thought, at a time when the world of wine – and particularly fine wine – is entering a new era…
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