In the so-called expensive luxury goods market, demand for jewelry and watches has recently been increasing beyond existing bags.
According to the three department stores, sales of luxury goods showed an unusual growth rate of around 20% in 2022 when people could not travel abroad due to COVID-19, but plummeted to around 5% last year.
This year (January to September), the quarterly growth rate was in the 5 to 10 percent range, showing a rebound from last year’s slump. In particular, sales of accessories among all luxury goods have increased significantly, leading to the growth of luxury goods. Watches are also steadily gaining popularity.
This year, sales of luxury accessories and watches at Hyundai Department Store continued to grow, exceeding those in 2022, when luxury goods enjoyed a ‘special’ season.
The annual jewelry sales growth rate decreased from 31.4% in 2022 to 15.5% last year. Jewelry sales increased by 33.5% in the first quarter of this year, 29.9% in the second quarter, and 33.4% in the third quarter, exceeding the 2022 growth rate.
The watch sales growth rate also decreased from 14.5% in 2022 to 8.8% last year, but was higher than in 2022 at 15.5% in the first quarter of this year, 16.7% in the second quarter, and 15.3% in the third quarter.
Compared to the overall sales growth rate of luxury goods, which fell from 22.3% in 2022 to 5.8% last year and stayed in the 11-12% range for each quarter this year, the growth of accessories and watches was clear.
The year-on-year growth rate of Shinsegae Department Store’s luxury goods sales decreased from 22.1% in 2022 to 0.3% last year. This year’s quarterly growth rate was 10.1% in the first quarter, 7.8% in the second quarter, and 6.6% in the third quarter.
The growth rate of jewelry and watch sales also fell from 23.9% in 2022 to 1.5% last year, but then rebounded sharply this year to 17.5% in the first quarter, 12.7% in the second quarter, and 18.8% in the third quarter.
Lotte Department Store’s overall luxury goods sales increased by 25% in 2022, but only increased by 5% last year. This year, it increased by 10% in the first quarter and by 5% in the second and third quarters, respectively.
The growth rate of jewelry sales overall tended to be about 10% higher than that of luxury goods. The annual sales growth rate decreased from 35% in 2022 to 5% last year, but then increased to 30% in the first quarter, 10% in the second quarter, and 15% in the third quarter of this year.
Watch sales increased by 10% in the first quarter of this year, but only showed a growth rate of about 5% in the second and third quarters. Lotte Department Store discloses its sales growth rate in 5% increments.
The luxury goods industry analyzed that domestic luxury goods consumption, which had been focused on bags and clothing, is shifting to accessories after the coronavirus, and demand for watches is also continuing steadily.
An official in the luxury goods distribution industry said, “Consumers who purchased bags during the COVID-19 pandemic, when consumption of luxury goods increased significantly, are switching over to jewelry. As luxury bags are no longer rare, a demand for the next level of bags has formed.” analyzed.
He continued, “Luxury brands are also strengthening their jewelry product lines to reflect this demand.”
For example, if you purchase a bag from a specific brand such as Chanel or Louis Vuitton, you will not often buy another bag of the same brand, but jewelry is a category with high growth potential as there is a demand to purchase additional necklaces and rings as a set when purchasing earrings. It will.
Reporter Lee Young-ho [email protected]
