Luxury consumption is rapidly shifting from handbags to high-end jewelry and watches. In the first quarter of this year, sales of jewelry and watches at Lotte, Shinsegae, and Hyundai department stores surged by nearly 50% compared to the same period last year, outpacing overall luxury sales growth. This trend is attributed to rising marriage rates, stock market gains, and substantial bonuses from semiconductor companies.
According to the department store industry, Shinsegae's overall luxury sales increased by 29.8% in the first quarter compared to the previous year. Jewelry sales rose by 55.6%, and watch sales increased by 36.9%, significantly exceeding the overall luxury growth rate. Similarly, Lotte Department Store reported a 30% increase in total luxury sales, with luxury jewelry and watches soaring by 55%. Hyundai Department Store also saw a 30% growth in overall luxury sales, with jewelry and watch sales up by 50.2%. In contrast, the overall sales growth for the three department stores ranged from 7% to 12%, highlighting the remarkable performance of jewelry and watches.
A key factor behind this surge is the increase in marriage rates. According to the National Data Agency, there were 62,309 marriages in the first quarter, an increase of 3,609 (6.1%) from the previous year. This marks the highest number of marriages for the first quarter since 2018. An industry insider noted, "Recently, there has been a clear trend of couples investing more in jewelry and watches while cutting back on wedding expenses. The increase in marriages and this trend have contributed to the rising demand for engagement gifts."
Additionally, record bonuses from semiconductor companies like Samsung Electronics and SK Hynix have also played a role. The impact has been particularly pronounced in department stores located in the southern Gyeonggi province, where these companies are based. For instance, Shinsegae's South City (Yongin) saw jewelry sales soar by 146.3% and watch sales by 85.3% from January 1 to 20 compared to the previous year. Hyundai Department Store's Pangyo branch also reported a 43% increase in luxury sales during the same period, with jewelry and watches up by 68.8% and premium clothing by 37.5%.
In response to this trend, department stores are actively curating distinctive brands to capture demand. Shinsegae is showcasing the British high jewelry brand Jessica McCormack in a pop-up store on the first floor of its Cheongdam location until June 26, marking the brand's first appearance in Asia. This pop-up follows its debut at Harrods in the UK, making it the second location worldwide.
Lotte Department Store has opened a store featuring 'Chloisoo,' established by renowned Korean cloisonné artist Lee Soo-kyung, on the third floor of its Avenue L branch. The artist's work includes a traditional ornament gifted by President Yoon Suk Yeol and First Lady Kim Hye-kyung to Chinese President Xi Jinping and his wife during the Korea-China summit in January. The store showcases over 30 art pieces and cloisonné jewelry, including the representative work 'Fantasia,' valued at 300 million won.
* This article has been translated by AI.
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