‘Luxury Market in South Korea’ - Guest at the Beyond Digital Luxury Podcast
Source: Beyond Digital Luxury
In August 2024, Bettina Sehorsch and M. Raquel Silva, the founders of Beyond Digital Luxury invited me to speak on their podcast – YouTube link here. Below is a summary of our conversation with some extra bits that didn’t make it into the podcast due to time constraints. I hope you enjoy!
Beyond Digital Luxury: In your opinion, what are the unique aspects of the Korean Luxury market in the context of technology?
DKL: Over the past decade, homegrown luxury brands like GENTLE MONSTER and TAMBURINS have been shaping the market, influencing even Western luxury brands. Their deep understanding of Korean consumers allows them to address local needs more effectively, setting new industry standards that global players must adapt to in order to remain competitive.
TAMBURINS flagship in Hannam-dong
Luxury market intelligence reports from firms like Bain & Co. and BCG highlight how consumers now expect the seamless convenience they’re accustomed to with Amazon as a baseline. Luxury brands, in turn, must go beyond that to offer something truly exceptional. The same principle applies in Korea’s hyper-connected market, where brands must constantly innovate to stay ahead.
A great example of this is Kyobo, Korea’s largest bookstore, which has mastered omnichannel retail by creating a seamless connection between its online and offline experiences. If a bookstore – despite being relatively niche, even in a country where reading is highly valued – can achieve this level of innovation, other retailers have no excuse.
Beyond Digital Luxury: What do you know from experience is critical for luxury brands that are successful in the South-Korean market? Who did it well, who struggled?
DKL: A crucial factor for success in the Korean market is a brand’s willingness to understand its unique dynamics and the level of service Korean consumers expect. What works perfectly elsewhere can lead to complete failure here, as seen with Sephora. Earlier this year, the selective retailing giant announced its withdrawal from the market—a move that didn’t come as a surprise. While the brand name initially generated excitement among Korea’s well-traveled consumers, Sephora failed to sustain that momentum.
At the heart of this failure was a lack of humility and a reluctance to truly understand what it takes to succeed in Korea. They didn’t form strong partnerships with key online platforms, didn’t update their product selection and store experience frequently enough, and ultimately became irrelevant. Korea’s beauty market is intensely competitive, and local powerhouse Olive Young responded to Sephora’s entry by stepping up its game—partnering with more high-end beauty brands and continuously adapting to evolving consumer demands. Sephora, on the other hand, failed to do the same, sharing the fate of Boots, another major retailer that couldn’t make it in Korea.
In contrast, Chanel – a brand known for its conservative approach, including its refusal to sell collections online – demonstrates a deep understanding of Korean consumers. They leverage KakaoTalk, Korea’s dominant super app, for direct communication and even operate a brand store on its gifting platform, featuring fine jewelry and watches.
CHANEL Rouge Allure Velvet Nuit Blanche Pop-Up at Seoul Dosan Park
Most notably, Chanel recently opened Chanel & Moi – Les Ateliers Seoul, a dedicated brand experience and service center. This allows Korean consumers to access official Chanel repairs locally, eliminating the need to rely on third-party services or wait months for international servicing. Additionally, Chanel excels in immersive brand experiences, creating expansive, multi-room pop-ups that transport visitors into a fully realized brand universe. Their dedication has paid off – Chanel recently overtook Louis Vuitton as the top luxury brand in Korea by revenue. It’s clear they did their homework.
Beyond Digital Luxury: You are also an artist and have probably an insider perspective on art in the context of luxury. What is it?
DKL: Focusing on the past few years, it’s exciting to see the top revenue-generating luxury brands – Chanel, Louis Vuitton, and Dior, along with Hermès and Gucci – investing significant effort and capital into maintaining their cultural relevance. Chanel, for instance, supports an incredible initiative by the Yeol Korean Heritage Preservation Society, a private foundation dedicated to Korean craftsmanship, through its Artisan of the Year and Young Craftsman of the Year awards. Meanwhile, Dior and Louis Vuitton actively engage with Korean artists – Dior’s Lady Art initiative has featured collaborations with as many as 24 Korean artists, while Louis Vuitton’s Artycapucines collection included works by the renowned artist Park Seo-Bo.
Lady Dior Celebration poster featuring bag by Minjung Kim | Source: Dior
This year, Hermès brought 27 of its artisans to Seoul for the Hermès in the Making pop-up, coinciding with Korean Crafts Week. Gucci, on the other hand, made a brilliant strategic move by launching its Korean Cultural Month right after Seoul Art Week – leveraging the excitement while avoiding the risk of getting lost in an already event-packed period. Gucci has also been supporting the conservation of Gyeongbokgung Palace since 2022. Additionally, Cartier has played a role in cultural preservation by funding restorative research conducted by Onjium, a traditional culture research institute.
Adding to this dynamic mix are Korean brand ambassadors – K-pop artists and actors – many of whom are art collectors themselves. Their engagement with artists extends beyond official brand collaborations, making for an incredibly powerful intersection of luxury, culture, and contemporary art.
Like many others, I deeply appreciate the patronage luxury brands provide to artists and cultural institutions, as it helps introduce them to a wider audience. In fact, that’s how I personally discovered many of them. This support also aligns with the longstanding commitment of the Korean government, which has been heavily investing in the creative industries for the past 30 years. Many assume the global rise of K-content happened overnight, but in reality, it’s the result of decades of systematic effort by multiple stakeholders.
Having lived in Seoul for the past 16 years, I’ve witnessed a remarkable transformation in public spaces, with a growing emphasis on infusing daily life with culture. Just last week, I attended the Hanbok Expo and was blown away by the fashion show prepared for the occasion, featuring models I recognized from the pages of Vogue Korea. The event was organized by the Korea Craft & Design Foundation, a public institution under the Ministry of Culture, Sports, and Tourism, yet the promotional videos and video art showcased during the fashion show were on par with the high production values we’ve come to expect from the private sector.
Beyond Digital Luxury: Why is South-Korea a great market to experiment with new technologies?
DKL: Korea has an outstanding infrastructure, with high-quality internet that remains fast and reliable even in the deepest underground sections of the subway. Most people own the latest smartphones, thanks to telecom companies making it easy to upgrade frequently. This isn’t considered a luxury – it’s simply the norm, especially for those living in the capital. In Seoul, a sprawling metropolis where nearly half of the country’s population – around 25 million people – reside, access to innovative audience activations is practically unlimited.
Whether it’s visiting a flagship or pop-up store in one of the trendiest districts or experiencing a fun collaboration with Netflix at a neighborhood convenience store, engagement with brands is a constant part of everyday life. Speaking of convenience stores, they offer far more than just snacks—they have full food stations, banking services, and even international package shipping. Understanding their role is essential to grasping the lifestyle of the Korean consumer.
In Korea, if you’re not continuously improving, you risk becoming outdated almost instantly. When you consider the country’s rapid transformation over the past 70 years – from the poorest nation in Asia to a global powerhouse – it becomes clear why Koreans are accustomed to an extraordinary pace of change, especially in technology.
Beyond Digital Luxury: What did you notice could be opportunities when it comes to during and post travel experience for tourists?
DKL: This one is tricky because the whole Korean system has been built with Korean in minds and so it’s quite challenging to move around Korea and leverage Korean services without having a Korean phone number, the no. 1 method of authentication for most channels. Brands have to get quite creative in their communication strategies when they want to get around it. And while it’s possible for someone without a Korean number to set up a Kakao Talk account – the no. 1 messenger and one of the most important communication channels – not everyone visiting Korea will want to set one up. So that leaves you with email. For things to change properly, there needs to be a bigger structural change within the Korean system. It’s long overdue.
Beyond Digital Luxury: South-Korea seemed to me quite traditional with role in the companies. Often there a lots of women but the decision makers are still men. Regarding the role of women in leadership in luxury, do you see this evolving?
DKL: I believe retail, including luxury, and digital commerce are at the forefront of change when it comes to women in leadership. Even nearly a decade ago, when I was doing Korean market business development for emerging technology companies, these were the sectors where I encountered the highest number of female leaders. HR and marketing tend to be the first areas where women thrive, likely due to their strong interpersonal and strategic communication skills. However, more traditional industries have been slower to shift their mindset.
That said, some of Korea’s most influential tech companies are leading the way. Naver, the country’s top search engine, appointed its first female CEO in 2017 and again in 2021, while Kakao, the creator of Korea’s number-one messaging platform, followed suit in 2023. These appointments signal progress, but there is still a long way to go.
Despite the urgent need for change, Korea remains a deeply conservative society, and gender tensions persist. While strides are being made, true equality in leadership roles is still a work in progress.
Beyond Digital Luxury: What's the deal with bridal in the jewelry market in South-Korea?
DKL: That’s quite a culturally intriguing topic. Wedding jewelry as we know it—engagement rings and wedding bands—is a relatively recent phenomenon in Korea, introduced alongside Western cultural influences. Traditionally, the union between two people and their families was symbolized in other ways rather than through rings.
While modern weddings in Korea still incorporate some traditional elements, the ceremonies themselves tend to be quite brief. The couple exchanges vows and wedding bands in a ceremony that typically lasts only 30 to 40 minutes, followed by a meal at a restaurant. It’s a completely different experience from the Polish weddings I’ve attended, which are much longer and more elaborate!
Engagement rings are also approached differently in Korea compared to the West. Many couples opt not to have both an engagement ring and a wedding band, instead choosing just one ring exchanged during the ceremony. In fact, what is traditionally considered an “engagement ring” in Western culture—a band with a large stone—is often used as the wedding ring itself.
When it comes to wedding jewelry, some of the most sought-after brands in Korea include Tiffany & Co., Piaget, Bulgari, Van Cleef & Arpels, Chopard, Boucheron, Chaumet, Cartier, and Chanel. These names consistently dominate the market, reflecting both prestige and timeless elegance.
Beyond Digital Luxury: Are there any symbols or important holidays that brands need to understand when doing business in South-Korea?
DKL: Korea has a distinct culture that blends Eastern and Western influences in fascinating ways. Chuseok, often compared to Thanksgiving, and Lunar New Year are the two most significant holidays in Korea. Ever since family life became my main focus, I sometimes barely notice the transition from December 30 to January 1. My husband, who is Korean, doesn’t care about it at all. Instead, Chinese Zodiac signs hold much more significance than Western astrology and play a central role in marketing campaigns.
Christmas in Korea is quite different from how it’s celebrated in the West. It’s a major day for couples rather than families, and it’s essentially just one day—the 25th. Department stores are among the few places where you can truly feel the holiday spirit. However, since it’s an important occasion for couples, it also presents a key shopping opportunity. Black Friday has also found its place on the Korean shopping calendar, further shaping consumer behavior.
One of the most fun and uniquely Korean shopping traditions is November 11, known as Pepero Day, launched in 1983. Pepero, a brand of long, chocolate-coated biscuit sticks, resembles the number "1," similar to Single’s Day in China. However, unlike China’s focus on singles celebrating themselves, Pepero Day in Korea is all about gifting snacks to friends, colleagues, and loved ones—turning it into a lighthearted and widely enjoyed occasion.
Peppero Day advertisement | Source: LOTTE
Beyond Digital Luxury: What role does K-Pop play and when you think about South-Korean content, what caught your attention?
DKL: K-Pop is, unsurprisingly, a massive force in Korea, with its artists wielding immense influence. But beyond K-Pop, Korean actors also hold significant cultural relevance, and the country’s thriving variety show industry has produced its own roster of beloved stars. These entertainers are everywhere – you’ll see their faces on everything from TV commercials to the labels of energy drinks and packs of gummy bears.
Public spaces are saturated with Korean content, and while some global trends do make their way here – like the Avengers – Korea largely prefers its own pop culture. Having lived here for 16 years, I’ve developed some serious gaps in my awareness of global music hits. If it weren’t for a few friends who still remember to send me links, I’d probably be completely out of touch with what’s happening in the rest of the world when it comes to music.
Beyond Digital Luxury: Which Korean brands impress you and why?
DKL: I’m a bit biased toward brands that take something traditional and give it a modern twist. I absolutely love Tchai Kim, a quirky modern Hanbok brand that reinterprets traditional Korean clothing. Then there’s Eastern Edition, a furniture and now fragrance brand created by Teo Yang, one of Korea’s top interior designers. I also adore Sulwhasoo, a luxury skincare brand under AMOREPACIFIC, which integrates a multitude of traditional elements into its branding. I swoon every time I visit their flagship stores, whether it’s the sleek, modern one in Seoul’s Dosan Park or the one set in the Bukchon Hanok Village, surrounded by traditional Korean houses.
Of course, GENTLE MONSTER and its sister brand TAMBURINS are also favorites, as well as ADERERROR, a futuristic fashion brand. These brands go above and beyond in providing an incredible customer experience. They’re truly on another level, as they know how to leverage both traditional and modern Korean culture, as well as specific subcultures and technology, to create immersive brand universes.
ADERERROR flagship store in Seoul, Apgujeong
