A shopper tries on makeup at a department store in central Seoul on Jan. 29, 2023. (Yonhap)
SEOUL, July 17 (Korea Bizwire) — 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 percent compared to last year.
When categorized by product, sales of high-end color makeup and niche perfumes experienced significant growth rates of 25 percent and 20 percent, 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 percent, surpassing the growth rate of overall luxury sales (6.4 percent).
Shinsegae International, the importer and distributor of ten popular niche perfume brands, including Diptyque and Byredo, witnessed rapid growth of over 30 percent 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 percent last year, the highest in Asia.
Ashley Song (ashley@koreabizwire.com)
