Despite a declining birth rate making the sound of babies crying less common in South Korea, the country’s luxury children’s clothing market is experiencing growth, according to a recent report by the Financial Times (FT). Experts attribute this trend to the Korean cultural tendency towards conspicuous consumption, with one noting, “Koreans enjoy showing off and cannot stand being left behind by others.”
The FT featured the story of Kim, age 38, who exemplifies the trend of South Korean parents dressing their children in luxury brands. Kim recently purchased a Tiffany necklace for her four-year-old daughter for 780,000 won and Golden Goose shoes for her 18-month-old daughter for 380,000 won.
“I want my children to look nice when we go to events like weddings or birthday parties,” Kim told the FT. “I don’t mind the price if my children can run around comfortably in these clothes and shoes.” Kim has also bought Moncler jackets and shirts, Burberry dresses and pants, and Fendi gowns and shoes for her children.
Another parent, a businessman from Jamsil, Seoul, expressed concern over his 17-year-old daughter’s familiarity with luxury brands, which began with gifts from her grandparents. She recently received a pair of ASICS and Marc Jacobs collaboration sneakers worth 800,000 won as a birthday present. The father worries whether she will be able to sustain such luxurious spending once she starts earning her own money.
The article notes that South Korea ranks at the bottom for birth rates globally, according to World Bank data, but as Koreans become wealthier, they spend more on luxury items for their children. According to market research firm Euromonitor, South Korea is one of the fastest-growing luxury children’s clothing markets globally, recording an annual growth rate of over 5% over the past five years, following China and Türkiye.
Lisa Hong, a beauty and fashion consultant at Euromonitor, commented, “Although South Korea’s birth rate continues to fall, the luxury market for children keeps growing. With many families having only one child, they opt for the highest quality products, and the age at which children start using luxury goods is getting younger.”
A Korean luxury brand representative said, “Moncler winter jackets have become a uniform for teenagers here. In Korea’s competitive society, people use luxury goods to stand out.”
The FT also pointed out that while many young people grew up receiving expensive gifts, they feel frustrated by high housing prices, leading them to join Korea’s luxury boom. Luxury brands are capitalizing on this trend by appointing K-pop stars like BTS and Blackpink as ambassadors, targeting people in their 20s and 30s. These idols, featured in advertisements, help cement the brands’ appeal among younger audiences, fueling a desire for luxury goods. Social media influencers showcasing luxury shopping further amplify this trend.
According to a 2022 analysis by Morgan Stanley, South Korea accounts for approximately 10% of the global sales of luxury brands like Prada, Moncler, Bottega Veneta, and Burberry.
Rhee Chang-yong, Governor of the Bank of Korea, mentioned in June that the Korean preference for luxury goods is one of the structural factors making it challenging to control inflation, which is running higher than the OECD average. “It’s rare to see a country where everyone buys the same brand when it becomes popular, as we see in Korea,” he said.
