THE KOREA LUXURY MARKET

Transcription

1 THE KOREA LUXURY MARKET

2 Luxury

3 Luxury is the opposite of vulgar. - Coco Chanel

4 Why Luxury Business? Family Business Originality + Savoir-Faire Created by hands Custom-made products - Economic Growth/World Peace - Woman Emancipation - Influx of capital - Introduction of Marketing Industrial Business Very high break-even point But, very HIGH-PROFIT business High value of brand asset

5 Why purchase Luxury? Luxury for myself - Quality / Multi-sensory - Hedonism / Aesthetic pleasure Luxury for others - Social necessity - Ostentation : Objects, Art, Beauty Source: The Luxury Strategy

6 럭셔리산업의분야 Leather Goods Fashion Watch & Jewelry Cosmetic & fragrance Hospitality Others: Retail, Automobile, Table Wear, Art, Education, Health Care.

7 Luxury Added value? Added Values Functional Needs Figure (Founder, Designer ) Heritage Legitimacy Brand (logo) Story

8 Louis Vuitton Louis Vuitton Heritage Trunk Asnières Museum Art of Travel Spirit of Travel

9 Rarity Management Ingredients, Components Techno-rarity, Innovations Limited editions, Order-made Distribution-based Rarity Information-based Rarity natural virtual Source: The Luxury Strategy

10 Hermes

11 Importance of Visual Signature Value of Recognition Means to show-off Sign of Brand Legitimacy Timeless Factor Brand logo protection against counterfeits to survive!

12 Chanel

13 Chanel

14 Christian Dior

15 Christian Dior

16 Burberry

17 Burberry s zebra

18 Luxury Marketing Paradox Auto Manufacturing Craftsmanship Detailed Information Multi Promotional Activities MASS MARKET Low Cost Low Price No Sophisticated Copy Strategy Low Promotional Activities LUXURY MARKET High Cost High Price Diverse Distribution Limited Distribution Source: Luxury Brand Management

19 Values of Luxury Consuming Practical & functional Symbolic Experiential Exchangeable (investment) Holistic Multi-Sensorial Experience

20 Rule of Thumb Forget about the economies of scale! Selective Rare, but manageable Brand identity! Proactive Different, but consistent Long term planning

21 The Korea Luxury Market

22 If I bring my business to Brazil. I would want to know: The Market Overview Where to sell Whom to work with How to communicate Whom to sell

23 Market Overview

24 Share of Luxury Market Local purchase Overseas purchase Duty-free (Travel Retail)

25 Luxury Market History 1980 s : Travel Retail & License markets 1990 s : Agency => Direct Management 2000 s : Matured market

26 Change of Interest Appearance Experience

27 Priority of purchase Hand bag Shoes Fashion Jewelry & Watch Automobile Watch Fashion Shoes Seource: SLBI

28 Trend in Marketing Smart & Healing Anti-aging and Skincare Private Gym and Personal Training Gourmet event with chef or winemaker Modern Art / Design Men s Market VIP Service

29 Changes in Environment I am luxury, too! Expansion to hospitality Diversity in merchandise in duty-free stores Diversity in shopping channel Power game of department stores and brands Growth of digital luxury & internet business

30 Duty-Free Market Koreans travelling overseas: $400 limit Foreigners travelling to Korea: No limit Domestic duty free in Cheju Japanese > Chinese > Russian

31 Local vendors Parallel Market Boutiques in middle & small cities Product purchased in Seoul to sell with premium Flagship stores, department stores Overseas vendors Japanese, Chinese vendors Price difference between Japan/China and Korea Duty-free stores, department stores

32 Wedding Market Watch & Jewelry Handbag Home appliances Clothing Cosmetics Furniture Kitchenware

33 Local License Market Local Production with luxury brand Products satisfying local customers needs Royalty business

34 Second-hand Market Top-tier brands: LV, Hermes, Chanel, Cartier Leather goods, shoes, watch, clothing Korean, Japanese tourist On-line websites

35 Counterfeit Market Despite of legal actions, still found in many places.

36 Where to Sell

37

38 Free-Standing Stores

39 Department Stores

40 Duty-Free Stores

41 Shinsegae & Lotte Outlets

42 Multi-Brand Stores Rather under developed World-famous designer brands Boon the shop (Shinsegae International) 10 Corso Como (Cheil Mojik)

43 Whom to work with

44 Agency Local Business Wearfun fashion & Accessories M&B Inc. - Watch Keumbi Cosmetics & Perfume Department Stores The Galleria, Hyundai, etc. Travel Retail Bluebell Korea (LVMH)

45 How to communicate

46 Printed Media Newspaper Monthly International license & local fashion & beauty Membership Department stores Men s Street paper

47 Digital Media Power blogger Facebook Twitter Websites of magazines On-line magazines

48 Communications Advertisement Advertorial, Editorial & Pictorial Bus shelter Outdoor banners Short films on trendy beauty shop Cable TV programs Product Placement Celebrity endorsement

49 Promotion & Event Fashion shows Beauty class Jewelry class Invitation of Craftsmen Art & Cultural events VIP Gala

50 Prada

51 Gucci

52 Celebrity Marketing

53 The Customers

54 The Korean Rich Progressive Specialist The new rich Wealth Mgnt Enterpreneur Digital Conservative The traditional rich Inherit analogue Life Style digital Source: VIP Marketing 54

55 Department Stores VIP Marketing $10,000 purchase /year VIP lounge service Free parking Bank, Credit card, Insurance, etc. $1 b cash Gifts Invitation to cultural events Chef / Winemaker dinner Golf event

56 What they want? 사회경제체제에서, 노동조직에서의부의분배방식과수량의다름에따라생긴인간집단이계급이다. 그들이원하는건단 2 가지 - 불평등과차별! 군림하고지배할수없다면차라리철저히차별받기원한다. 그것이그들의순리이자상식이다. - In a TV drama Secret Garden Inequality & Discrimination 56

57 Preferred Values of VIP Exclusivity I am the only one who owns it I am the person who have special taste Recognition Remember and recognize me I deserve inequality & discrimination 57

58 It s Korea!

59 Social Contribution Programs According to the public opinion, some luxury brands started social contribution programs Louis Vuitton Gucci Volkswagen Ermenegildo Zenga Toyota

60 Louis Vuitton

61 Gucci

62 Toyota

63 Volkswagon

64 감사합니다 ~! Obrigado~! Thank you~!