Editor’s Note
This article highlights a notable trend in retail sales, where luxury items like watches and jewelry are seeing strong growth despite broader economic headwinds. The increase is attributed to rising marriage rates and higher gold prices, underscoring how specific demographic and market factors can drive consumer spending even in a challenging environment.
Despite sluggish domestic demand in the third quarter, department stores’ sales of luxury watches and jewelry showed growth rates in the 30% range. Analysis suggests that the increase in marriage numbers, leading to higher demand for wedding gifts, has had a significant impact. Additionally, the rise in gold prices, which has increased jewelry prices, also appears to be a reason for the sales growth. According to the distribution industry on the 21st, sales of luxury items such as jewelry and watches at major domestic department stores jumped significantly from July to September.
Lotte Department Store saw sales of luxury watches and jewelry grow by 35% compared to the previous year, Shinsegae Department Store by 36%, and Hyundai Department Store by 38.4%. With the peak wedding season of October-November approaching, demand for wedding gifts is concentrating, leading to a sharp rise in luxury sales. According to Statistics Korea, the number of marriages in Korea has been on an upward trend for 16 consecutive months.
Analysis indicates that a trend of purchasing luxury wedding gifts, which can be stored for a long time and do not depreciate significantly in value, instead of reducing costs for studio photography, dresses, makeup, and wedding venues, is driving the upward trend in department store luxury sales.
Department stores are also accelerating their efforts to strengthen their watch and jewelry categories in line with this trend. Hyundai Department Store has successively introduced Italian and French luxury brands at key stores such as The Hyundai Seoul and Pangyo, and plans to newly open the French high-jewelry brand ‘Chaumet’ at its Pangyo store in December. Following the simultaneous opening of ‘Van Cleef & Arpels’ and ‘Graff’ at its main store in March this year, Lotte Department Store attracted the Swiss high-end watch brand ‘Jacob & Co.’ last month, a first in the industry.