【South Korea】Growing Alone Despite the Recession… The New Protagonist of Luxury Brands: ‘High Jewelry’ [Lee Yoon-jung’s Unveil]

A recent look at consumption patterns shows that the popularity of luxury brands has slowed compared to a few years ago. Compared to the ‘luxury brand boom’ during the COVID-19 pandemic, the current state of the luxury brand market feels unfamiliar.
The global economic downturn, which has led to consumption centered on ‘value for money’ (performance relative to price), also seems to have had an impact, reducing purchases of luxury brand products.
However, comparing sales by item for luxury brands reveals that there are still, or rather, items selling much better than before. That item is ‘High Jewelry’.

Unlike commonly encountered pendants, rings, and bracelets, High Jewelry uses the finest gemstones and is handcrafted by artisans over tens or even hundreds of hours, often compared to works of art.
Many brands, including the so-called three major jewelry brands Cartier, Taffin, and Bulgari, introduce new High Jewelry collections every summer.
Each collection, showcased at famous resorts like Saint-Tropez in France or Portofino in Italy before the wealthy go on vacation, has a theme, much like fashion. The pieces introduced in each collection are made one-of-a-kind. ‘Scarcity’ is so crucial that if someone has already acquired a piece, an identical one cannot be made even if a premium is offered.

Another characteristic of High Jewelry is that the design is tailored to the gemstone. This differs from clothing or bags, which are created based on a designer’s philosophy or concept.
If a rare opal is acquired, a piece is born from a design that maximizes that opal’s beauty. The Cafayate necklace from Cartier’s High Jewelry collection ‘En Equilibre’ introduced this year exemplifies the essence of gemstone-centered design.
The necklace introduced by Fred in its new High Jewelry collection ‘1936, Soleil d’Or Sunrise’, featuring a yellow diamond, also demonstrates how important gemstones are in High Jewelry.
The importance of gemstones naturally leads to an atmosphere where High Jewelry is regarded as part of one’s assets. Australia’s Argyle mine, known for pink diamond mining, closed in 2020. According to a report by Gemfields, a UK-based mining and sales company, output is declining in major ruby-producing regions like Myanmar and Mozambique. As mining becomes increasingly difficult and value rises, the appeal of gemstones as assets is growing.
When a recession persists and the economy struggles, the group often hit hardest is the middle class, whose disposable income decreases. The ultra-wealthy, on the other hand, often make even more money during downturns.
High Jewelry, made from top-grade gemstones like diamonds, sapphires, gold, emeralds, and rubies, typically starts at prices in the hundreds of millions of won and sits at the very top of a luxury brand’s product pyramid. The customers for High Jewelry are essentially a class largely unaffected by economic conditions.

The popularity of High Jewelry cannot be attributed solely to the economy. ‘Changing perceptions of jewelry’ also plays a significant role. For most middle-aged and older individuals, jewelry is something purchased for marriage and kept safely at home.

Today’s consumers view jewelry as an element that expresses their personal taste and purchase it according to their style. Unlike the past, where a ‘diamond ring’ was the unconditional choice for an engagement ring, recent marrying couples prefer rings from famous brands. It’s practical because it reveals their taste and can be worn in daily life.
In Korea, the sales of Boucheron’s ‘Quatre’, Cartier’s ‘Love’, and ‘Trinity’ rings, which are particularly popular as wedding rings, have surprised even their headquarters.
The landscape of popular brands is also changing. In Korea, besides the three major brands famous for wedding rings—Cartier, Bulgari, and Tiffany—the popularity of Van Cleef & Arpels, Fred, Chaumet, Boucheron, Damiani, and Graff has risen over the past few years.
As High Jewelry shows prominent growth, fashion brands like Louis Vuitton, Dior, and Chanel are also increasing the proportion of High Jewelry in their product portfolios.
As the tastes and sales of domestic consumers become known, brand headquarters are increasingly holding VIP events in Korea or introducing new High Jewelry collections in Korea to capture Korean consumers. Considering that just a few years ago, new High Jewelry collections were primarily unveiled in Europe or China, this is a remarkable change.
High Jewelry has been consistently introduced in Korea since the early 2000s but failed to capture the attention of domestic customers. Even if purchased, there were far fewer social events to wear them to, unlike in Europe or Hong Kong.
As perceptions of jewelry gradually become more flexible, brands provide VIPs with opportunities to showcase High Jewelry through VIP events. At jewelry brand VIP events the author attended, it was quite enjoyable to see customers wearing the brand’s jewelry in unique ways.
According to the UK fashion media ‘The Business of Fashion’ (BoF), jewelry sales are expected to reach four times fashion sales in the coming years. Jewelry is projected to grow by about 5.3~5.6% annually until 2028. Contrary to the general expectation that luxury brand growth will somewhat slow, High Jewelry’s solo run is anticipated.

High Jewelry is a work of art created by each brand using the finest gemstones through skilled artisans. High Jewelry, which fulfills the essential conditions of luxury brands—’scarcity’ and ‘artistic value’—can be said to be the protagonist that shows the identity of a luxury brand.