Editor’s Note
This article details the launch of a new high-end service by Seoul Auction, blending the worlds of art and luxury collectibles. It highlights a strategic expansion into the comprehensive care and resale of personal luxury assets.
Launch of ‘Luxury Item Comprehensive Care Service’ in July… Full Care Including Consignment, Appraisal, and Auction of Collections
A special space has been established in a corner of the first floor of Seoul Auction’s Gangnam Center. At first glance, the artworks displayed throughout the lobby might lead one to think it’s an art exhibition, but the main attractions here are none other than watches, handbags, and jewelry that catch the eye. This is the scene of ‘The Concierge’, officially launched by art auction house Seoul Auction in July this year after about two months of trial operation.
The Concierge is a venue that provides professional and comprehensive support for luxury items among the collections of Seoul Auction’s clients. As Seoul Auction, Korea’s leading art auction house, began its ‘Luxury Item Comprehensive Care Service’, interest from related industries poured in.
We met with Ryu Jimin, Senior Manager of Seoul Auction’s New Development Team, to hear more detailed stories about the background of Seoul Auction’s launch of The Concierge, the response so far, and future operational directions. He joined Seoul Auction’s online auction team in 2015, moved to Seoul Auction Blue, and was assigned to the newly established Seoul Auction New Development Team in February this year, where he is in charge of The Concierge.
What is The Concierge?
“The Concierge provides comprehensive services for luxury items such as watches, handbags, and jewelry among the collections of Seoul Auction’s clients. We are currently implementing basic consignment services and are structuring the system to allow for one-stop services including appraisal, valuation, and care of collections. The main goal is not to promote specific luxury brands but to increase customer service satisfaction. To intuitively show this, we named it The Concierge (a service provided according to the customer’s requests).”
Background of Launching The Concierge
“Although the history of the domestic luxury market is short, the speed of identifying, absorbing, and spreading trends has been very fast. Especially during the COVID-19 pandemic, with many restrictions on daily life, not only artworks but also luxury goods began to receive a lot of attention due to pent-up revenge spending psychology. The aspect of stable profit through resale as a form of investment in an economic downturn also gained attention. Even people who were not usually interested in luxury goods started buying them during this period, and many second-hand luxury platforms emerged, showing rapid market movement. Accordingly, the demand for professional luxury item services also exploded.”
“Seoul Auction was not completely unrelated to this demand. Seoul Auction’s main items are clearly artworks. But at the same time, we have been handling luxury goods as a side area long before the COVID-19 outbreak, through auctions focusing on jewelry and wine in the early 2000s, and luxury auctions through affiliates or consignment shops of Seoul Auction Blue since 2016. In 2014, we launched the online auction ‘eBid NOW’, which showcases various genres, and it also included various luxury items such as fountain pens, audio equipment, and vintage/design furniture. Therefore, the consideration to professionally conduct related services at Seoul Auction was by no means a short-term trend-following decision. After long and serious review, we concluded that luxury items are a high-end area that Seoul Auction can and must do.”
Target Customer Base
“The existing VIP customer base of Seoul Auction, primarily formed around the 4050 generation. It has been generally observed that customers who collect artworks also tend to enjoy consuming high-end luxury items. Especially customers who have built a thick trust relationship with Seoul Auction over a long time by entrusting their artworks tend to strongly desire professional care not only for their artworks but also for their other collections, which include luxury items. There was also a high need for all-care services where various collections can be managed in one trusted place, rather than sporadic management in multiple places like institution A for wine and institution B for jewelry.”
Differentiation from Existing Market
“The clear differentiation is, of course, the ability to operate auctions, which is Seoul Auction’s main business. Brokerage service is basic, and going a step further, one can expect higher hammer prices through auctions. Especially since auctions are a field Seoul Auction has been conducting for a long time, leveraging this strength can have the effect of expecting higher value for collections.”
“Another point is the specialized offline shop. Since luxury items are generally high-priced goods costing at least 5 million won, many customers want to see them directly with their own eyes and try them on. Although second-hand luxury platforms also operate offline shops these days, since online transactions are the main focus, they are still largely non-face-to-face. At The Concierge, you can directly see and experience luxury items in the space prepared on the first floor of Seoul Auction.”
Product Authentication Partnership with ‘Gugus’
“Amid the explosive growth of the domestic luxury market, Gugus has been operating for over 20 years and has sufficiently accumulated a database over a long time. It has rich references for changes in product models themselves and peculiarities that can distinguish between genuine and fake products. We decided to collaborate because it is a place whose skills can be trusted due to its long history.”
“When consigned items come into The Concierge, we organize the items for authentication and pass them to Gugus. After Gugus thoroughly verifies and confirms the authenticity of the physical item, the item is then listed at The Concierge. For example, there was a case where a customer consigned a vintage jewel with no inscriptions or information to confirm, and Gugus conducted authentication through its equipment and references regarding the quality of the craftsmanship and the authenticity of the diamonds.”
Future Growth Potential
Ryu Jimin, Senior Manager of Seoul Auction’s New Development Team, viewed the future growth potential of luxury items, which are gradually expanding their scope within the art market, very highly.
