Reason behind continuing demand for luxury brand items despite soaring prices

Описание: 명품 가격의 비밀... 가격인상에도 품귀현상의 이유는?

Welcome to Dialogue This Week.
In this corner we invite guests from in and out of Korea to talk about a wide variety of issues ranging from culture and sports, to the latest trends around the world.

The size of the luxury goods market has been rising rapidly over the past few years.
With soaring demand, prices of luxury goods from designer brands have seen an evident rise across the globe.

For instance Chanel raised the price of selected items for the fourth time this year alone and Prada and Louis Vuitton also raised price tags five times, much more than its previous average.
But even so, the craze for luxury products isn't fading.
In fact, luxury brands saw rapid double digit sales throughout this period.

So what is it that consumers see and get out of these expensive luxury items despite the skyrocketing price?

For an insiders view, we are joined by Park Se-jung, a freelance announcer who is a long time Chanel-lover via Skype.
Good morning Se-jung welcome to the show

And for a more in depth analysis on the situation, Lee Jang-hyuk, Professor of Marketing at Korea University Business School is also joining us via Skype.
Thank you for joining us Professor.


Let's start our discussion with Sejung
1. (SEJUNG) It seems inevitable that people in modern society see huge appeal in luxury goods.
It can often be a sign of success, status or wealth... I heard that you also have your own collection of items. Can you share with us, what significance does your collection have?

(not all "luxury brands"... first exposure to "beautiful things"... chose Chanel specifically - women empowerment)


2. (SEJUNG) You also co-wrote a book addressing the value you see in the brand.
What was the message you wanted to deliver to the readers?


3. (SEJUNG) Despite the intentions of Coco Chanel, the brand has become an empire of its own.
And while luxury labels do tend to raise their prices every twelve months... as I've mentioned earlier, since the start of the COVID-19 pandemic, Chanel have already hiked their prices for the fourth time. Does this change your stance regarding loyalty to the brand? What do you think of the frequent price hike?
(against price hike)

4. (PROFESSOR) Despite the price hikes, it seems like people still want to buy the items,... possibly even more eagerly.
I'm not sure if this is an international phenomenon but here in Korea we can easily see people waiting in line outside department stores from the early morning hours to purchase selected luxury items.
Professor, can you help us understand why luxury brands regularly raise their prices and decrease their supply... and also why demand doesn't seem to lessen even so?

5. (PROFESSOR) Some analysts have said that the recent increase in demand for luxury brand items is "revenge consumption"... Revenge against COVID-19... People have saved up for a vacation, or some kind of splurge that had to be cancelled due to the pandemic. What is your reaction to this analysis?
(Do you think the pandemic prompted more purchases)

6. (SEJUNG) What about you Se-jung? How has the pandemic impacted your collection? Did it prompt you to buy more or less?
(buy more? less? restricted travel to Paris? etc )

7. (SEJUNG) Certain high-end luxury lines are not just highly priced, but scarce. This means, even if one has the money to buy a product, they can't just walk in to the store and walk out with it.
As a consumer, how do you think this plays into the value of the brand?
(bad because not everybody can have access?? good because it rewards loyalty?? etc??)

8. (PROFESSOR) Scarcity is a classic marketing strategy. When it comes to luxury goods, is it especially worse in South Korea? Is it because we have higher demand? Or is it the same in other countries?

9. (xxxSEJUNG) With thriving luxury goods sales in South Korea, we're seeing a similar growth in the counterfeit market. Especially because you're someone that is loyal to a brand for what it stands for... how do you feel when you see counterfeit Chanel merchandise?

10. (xPROFESSOR) With the entire world in an economic recovery stage due to the pandemic, how do you see luxury goods playing a role?


This certainly was a very interesting discussion, but I'm afraid we will have to wrap up it up at this point.
Thank you so much Se-jung and Professor Lee for your time, hope to speak to you again soon.

#luxury_brand #luxury_goods #shortage_of_goods

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2021-11-12, 08:00 (KST)