McKinsey Spotlights Opportunities, Challenges, Priorities For Korea’s Luxury Goods Industry

Korea’s luxury goods market is experiencing strong growth, but will it hold up? To get a clearer picture of the near term  trends, market researcher McKinsey surveyed Korean luxury goods (i.e., fashion apparel, leather goods, shoes, watches/jewelry) and executives at luxury-goods companies. Several trends are creating a model for sustainable growth for the next three to five years, the company found. But the Korean luxury market presents a competitive test because consumers are looking for “distinctiveness” while becoming more price- and value-sensitive. McKinsey says the challenge for luxury goods companies in Korea is to take advantage of opportunities while adapting to increased market complexity. McKinsey identified five priorities for successful marketing of luxury goods in the country.