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| Jimin of K-pop group BTS poses during a photo shoot before the Dior Menswear ready-to-wear Fall/Winter 2023-2024 collection show during Men's Fashion Week in Paris, France, Jan. 20. Reuters-Yonhap |
As more K-pop icons become brand ambassadors, luxury goods market expands to younger consumers
By Kwak Yeon-soo
A woman in her 40s surnamed Yoo recently bought her daughter a Vivienne Westwood cross bag for 580,000 won ($470).
"My 16-year-old daughter actually asked for a Prada or Saint Laurent handbag, which are at least five times more expensive. But I told her no because it's too pricey for a high school student. Now I'm worried that she might want a more expensive item next," she said.
The thousands of luxury haul videos by precocious teenagers flaunting their shopping sprees indicate that luxury shoppers are getting younger.
In a 2020 survey of 783 middle and high school students conducted by local school wear brand S'FD, 56.4 percent of respondents said they have bought luxury products.
Experts say the appeal of luxury brands to teenage consumers is in the bandwagon effect of social media.
"Consumers generally choose luxury goods that meet their unique tastes and preferences. But Koreans tend to make a safe choice by purchasing the most popular ones. To make better decisions, they often rely on celebrities who are associated with luxury brands," said Kwak Geum-joo, a psychology professor at Seoul National University.
Suh Yong-gu, a business professor at Sookmyung Women's University, characterized teenage consumers as being basically in a one-way relationship with K-pop stars.
"K-pop stars are top influencers. Because luxury sales are digitally influenced, their social media posts and YouTube videos on luxury brands lead to 'flex culture' ― flaunting of wealth ― among younger consumers," he said.
According to Suh, Korea is the world's seventh-largest luxury goods market. Koreans spend an average of $325 per capita a year on luxury goods ― the highest figure in the world, according to Morgan Stanley.
Chasing Asia's big spenders, some luxury brands have recently appointed K-pop stars as their global ambassadors.
In January, French fashion house Dior named Jimin of BTS as a global brand ambassador. Suga of BTS is now the global ambassador of Italian luxury fashion brand Valentino, and BIGBANG vocalist Taeyang is for Givenchy. They made headlines at Paris Fashion Week last month, drawing crowds of global fans.
BLACKPINK members Jennie, Lisa, Rose and Jisoo have been endorsing global luxury brands Chanel, Celine, Saint Laurent and Dior, respectively.
Rookie K-pop groups are also attracting this high-end attention. Less than six months after their debut, NewJeans members Hani, Hyein and Danielle became the new faces of Gucci, Louis Vuitton and Burberry, respectively.
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| Jisoo of K-pop girl group BLACKPINK poses during a Christian Dior photo shoot as part of the Haute-Couture Spring/Summer 2023 Fashion Week in Paris, Jan. 23. AFP-Yonhap |
Luxury brands are well aware of the enormous influence that K-pop artists have on attracting young shoppers and creating social media hype.
Two days after appointing Jimin as its global ambassador, Dior's market price soared to an all-time high of 789 euros ($857). His two posts for Dior created $17 million in earned media value (EMV). This accounted for 54 percent of the brand's total EMV during Paris Men's Fashion Week, according to analytics firm Lefty.
Sales are almost guaranteed to increase significantly if brands find the right face to represent their product.
Suh said this recent phenomenon indicates the importance of the Asian market to luxury brands.
"After COVID-19, Europe's luxury market has been shrinking, while the Asian market kept growing. Pivoting to Asia, brands are appointing Korean celebrities as ambassadors because of their huge influence in the region," he said.
"The more young consumers learn about luxury brands through K-pop idols, the more they wish to buy. There is even a personality test called 'What luxury brand are you?'"
Lim Myung-ho, a psychology professor at Dankook University, warned teenage consumers to refrain from overspending on luxury goods.
"What surprised me lately is that kids liken the hierarchy of K-pop idols to the hierarchy of luxury brands by comparing who is the ambassador of what brand. In many cases, teenage consumers feel like celebrities are an extension of themselves," he said.
"They largely depend on their parents' money and end up spending above their budget. Usually, people have a stronger desire to splurge when they have less control over their lives ― for students it's common when they feel discouraged about studying and improving their academic records. In the long term, these behaviors may lead to bad consumption habits."
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