Korean luxury market shifts with surge in second-hand goods

(Han Joo-hyung)

As high inflation and tight consumer sentiment continues, the luxury market is seeing a shift in demand patterns, with a significant increase in second-hand luxury goods.

According to data released Friday by mobile big data firm IGAWorks’ Mobile Index, the cumulative amount of card payments on luxury platforms from January to August 2024 totaled 375.8 billion won ($282 million), down 38.1 percent from the previous year’s 606.9 billion won. Compared to 924.5 billion won in 2022, this is a 59 percent drop.

By platform, the past two years have seen drastic declines in card payment amounts, with an 80 percent drop for Lee & Han, 73 percent for Must It, 71 percent for Trenbe, 62 percent for D.Code, and 61 percent each for Balaan and Feelway. OKmall saw a more moderate decline of 36 percent.

On the other hand, second-hand luxury platforms are experiencing rapid growth in transaction volume. Cumulative card payments totaled 147.4 billion won from January to August 2024, up 124 percent from 65.8 billion won in 2022. In particular, Chic recorded a remarkable 594 percent increase while Gugus reported an 83 percent increase.

An industry insider noted that the luxury goods market has been affected by the decline in consumers‘ purchasing power due to high inflation. Mobile Index said that this data is based on estimates generated by its unique algorithm, which may differ from actual figures or other research surveys.