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South Korea ranks first in the world in per capita luxury goods consumption, and department store channels and foreign customer groups are new growth engines (Morgan Stanley)

2026-07-16·ima-daily5min-0716-47-a6c70f474a

Street Signal | South Korea ranks first in the world in per capita luxury goods consumption, and department store channels and foreign customer groups are new growth engines (Morgan Stanley)

Morgan Stanley released an overview study of South Korea's luxury goods market, pointing out that South Korea's per capita personal luxury goods consumption ranks first in the world. Department stores are the core of the luxury goods ecosystem, with the top three department stores accounting for more than 90% of sales.

Key changes: New World Department Store's same-store sales in June increased by 26% year-on-year, and the consumption contribution of foreign consumers (especially from China) increased significantly. The price of Korean luxury goods has obvious discount advantages compared with mainland China.

In 2025, the Korean market will account for a "high single-digit" proportion of the total global sales of most luxury brands. The market focus is generally on consumption in China and the United States, but the structural position of the Korean market in "heavy luxury" consumption has been underestimated.

This trend has a profound impact on the channel strategies and regional pricing of global luxury brands in Asia-Pacific. One sentence conclusion: South Korea is one of the most valuable markets for luxury goods sales in the world.

The concentration of its department store channels and the growth of foreign tourist consumption are reshaping the channels and pricing strategies of luxury goods in the Asia-Pacific region. Good/bad: Good for the top three department stores in South Korea (Shinsegae, etc.) and global luxury brands with important channels in South Korea (LVMH, Hermès, etc.).

Price in situation: South Korea’s structural value as a highland for luxury consumption has not yet been fully recognized by global investors. Catalysts:

1) Chinese tourists’ travel and consumption recovery data in South Korea;

2) The impact of changes in the Korean won exchange rate on price discount advantages;

3) The continued growth trend in same-store sales of Korean department stores.

Full text

South Korea ranks first in the world in per capita luxury goods consumption, and department store channels and foreign customer groups are new growth engines (Morgan Stanley)

Morgan Stanley released an overview study of South Korea's luxury goods market, pointing out that South Korea's per capita personal luxury goods consumption ranks first in the world.

Morgan Stanley released an overview study of South Korea's luxury goods market, pointing out that South Korea's per capita personal luxury goods consumption ranks first in the world. Department stores are the core of the luxury goods ecosystem, with the top three department stores accounting for more than 90% of sales. Key changes: New World Department Store's same-store sales in June increased by 26% year-on-year, and the consumption contribution of foreign consumers (especially from China) increased significantly. The price of Korean luxury goods has obvious discount advantages compared with mainland China. In 2025, the Korean market will account for a "high single-digit" proportion of the total global sales of most luxury brands. The market focus is generally on consumption in China and the United States, but the structural position of the Korean market in "heavy luxury" consumption has been underestimated. This trend has a profound impact on the channel strategies and regional pricing of global luxury brands in Asia-Pacific. One sentence conclusion: South Korea is one of the most valuable markets for luxury goods sales in the world. The concentration of its department store channels and the growth of foreign tourist consumption are reshaping the channels and pricing strategies of luxury goods in the Asia-Pacific region. Good/bad: Good for the top three department stores in South Korea (Shinsegae, etc.) and global luxury brands with important channels in South Korea (LVMH, Hermès, etc.). Price in situation: South Korea’s structural value as a highland for luxury consumption has not yet been fully recognized by global investors. Catalysts: 1) Chinese tourists’ travel and consumption recovery data in South Korea; 2) The impact of changes in the Korean won exchange rate on price discount advantages; 3) The continued growth trend in same-store sales of Korean department stores.

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