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Jewelry Market
in South Korea 8TH FEBRUARY 2017
OFFICE OF COMMERCIAL AFFAIRS, SEOUL
Luxury Jewelry in South Korea
Current value sales grow by 8% in 2016 to reach 1.7 million US$
Chinese tourists’ spending and local consumers’ growing taste for jewelry boost value sales
Luxury fine jewelry records the fastest current value sales growth of 9% in 2016
“Richemont Korea” leads luxury jewelry in 2015 with a 34% retail value share
A 6% value CAGR at constant 2016 prices is expected over the forecast period to reach
KRW2.7 trillion in 2021
Luxury Jewelry in South Korea (TRENDS)
Luxury jewelry continued to record outstanding value sales growth in South Korea.
Chinese tourists’ significant contribution to sales and domestic consumers’ growing taste for fine jewelry boosted sales
Department stores is the key distribution channel for luxury jewelry, particularly luxury fine jewelry
Internet retailing grew value share gradually to reach 5% in 2016. Category sales are driven largely by fine jewelry, and consumers prefer to visit and purchase these items in physical stores to ensure quality and authenticity.
Luxury fine jewelry recorded the fastest current value sales growth of 9% in 2016. Women’s jewelry led the way with a 9% increase while men’s luxury jewelry saw strong growth of 8%.
Luxury Jewelry in South Korea (TRENDS)
Luxury jewelry's value share of jewelry sales increased over the review period. However, luxury jewelry still accounted for only a small portion of sales.
Domestic fashion jewelry brands like J Estina and Stonehenge are attracting young customers with trendy designs. These brands have also introduced fine jewelry lines with more accessible price points. Moreover, a local fine jewelry brand Golden Dew is a strong player in wedding jewelry.
Sales of Luxury Jewelry by Category Year 2011-2016
2011 2012 2013 2014 2015 2016
Luxury Costume Jewelry 190.6 198.2 220 226.2 231.1 234.6
Men's Luxury Jewelry 155 173.6 205.2 231 251.4 271.1
Women's Luxury Jewelry 859.1 943 1,099.00 1,269.30 1,401.40 1,533.10
Luxury Jewelry 1,204.60 1,314.90 1,524.20 1,726.50 1,883.90 2,038.80
AM
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KR
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SALES OF LUXURY JEWELRY BY CATEGORY
Luxury Costume Jewelry Men's Luxury Jewelry Women's Luxury Jewelry Luxury Jewelry
Source: Euromonitor International from official statistics
Company Shares of Luxury Jewelry Year 2015
Top 5 NBO Company
Shares of Luxury Jewelry
Top 5 NBL Company
Shares of Luxury Jewelry
34.2
24
5.5
3.7 1.7
Richemont Korea Ltd Tiffany Korea Co Ltd Swarovski Korea Ltd
Bulgari Korea Ltd Pandora A/S
30.3
24
5.5
3.7 3
Cartier (Richemont Korea Ltd) Tiffany & Co (Tiffany Korea Co Ltd)
Swarovski (Swarovski Korea Ltd) Bvlgari (Bulgari Korea Ltd)
Van Cleef & Arpels (Richemont Korea Ltd)
Distribution of Luxury Jewelry
2011 2012 2013 2014
Store-Based Retailing
Grocery Retailers - - - -
Non-Grocery Specialists 16.1% 15.3% 14.1% 12.8%
Mixed Retailers 80.2% 80.7% 81.5% 82.5%
Non-Store Retailing Internet Retailing 3.7% 4.0% 4.4% 4.7%
Distribution Channel of Jewelry (Year 2014)
44.3 30.6 10.4 6.4
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
All
Retail Store Jewelry Shopping Center Department store Shopping Mall Others
42.2
50.5
31.2
29
10.8
9.3
7.6
2.8
8.3
8.4
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Female
Male
49.3
50
54.9
31.6
26.7
25
20.4
42.4
10.7
11.8
10.6
9.5
2.7
6.6
3.5
10.1
6.6
10.6
6.3
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
up to 50
40
30
20
AG
E
Retail Store Jewelry Shopping Center Department store Shopping Mall Others
Jewelry Market In Korea (Jongro Jewelry Shopping Street )
Jongro Jewelry Shopping Street located in Jongro, a central district of Seoul is well known nationwide. It is estimated to house between 2,000 and 4,000 jewelry stores of every size and packed close together in one district.
Jongro district is always had a large floating population and has been a well-developed commercial are since old time. The jewelry street in its current form has existed since the 1960s. At present about 70 percent of the domestic jewelry market is traded on Jongro shopping street.
Customer can purchase around 20-40 percent cheaper than market prices. Jewelry street is especially popular with soon-to-be married couples, and overseas tourist.
Jongro Jewelry Shopping Street
Jewelry Market In Korea (Jongro Jewelry Shopping Street )
Jongro Jewelry Shopping Street
Korea Jewelry Market
2010 2011 2012 2013 2014
Wedding Present Market Non-Wedding Present Market
1.574 Trillion
1.574 Trillion
1.605 Trillion
1.605 Trillion
1.571 Trillion
2.965 Trillion
3.728
Trillion
3.505
Trillion
4.305
Trillion
3.357
Trillion
Wedding present Market
Non-Wedding present Market
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▶ New consumer market of jewelry appears
▶ Sluggish old market ( wedding present Market)
Jewelry Market In Korea
47.1%
Jewelry without Gems
24.0%
Cubic Jewelry
6.7%
Pearl Jewelry
4.0%
Colored Jewelry
18.2%
Diamond Jewelry
Korean Costume Jewelry Market
Social Commerce & Celebrities
Activating E-Commerce
Encouraging Emerging Designer Brands
Enlarged and Various Jewelry Market in Korea
▶Internet Platform
Trend in Costume Jewelry Market
“Today, we are seeing silver on the runway like never before. Style, silver is an international
superstar in the fashion world.” from Tiffany’s to George Jensen
Trend in Costume Jewelry Market
Fashion jewelry is generally regard as less expensive than precious metals and gem stones.
However, a notable shift within silver as you see on the runway like George Jensen Said
Kenzo
Korean Costume jewelry Market
Firstly, one of distinguishable features of Korea market is the consumer
group, stimulating Market. Consumers in Korean market tends to sensitive
to trends and has wider range of women group through 20s to 40s who has
ability to spend the time and money for themselves.
Jem & Pebbles
Knuckling Rings
