ROK Drop

Avatar of GI KoreaBy on November 6th, 2012 at 6:59 pm

Korean Super-rich Continue High Demand For Luxury Goods In Korea

It looks like a lot of people South Korea are still living Gangnam Style according to this report:

One of latest marketing trends in Korea is in catering to the “top 1 per cent” customers. It comes upon a deepening polarisation in consumer spending. It is not unusual for the richest 1 per cent of customers to dominate a company’s overall sales. Firms in various sectors are rushing to launch marketing drives to woo what they call very, very important persons, or VVIPs, who usually make up 0.5 per cent to 1 per cent of their customer base.

Consumer spending has become polarised as the nation’s economic growth has slowed. Middle-class consumers have tightened their belts as the value of their key assets like real estate and stocks has fallen over the past few years. Consumer spending on dining and clothing has been shrinking, but demand for luxury goods continues to rise.

Another reason for polarisation in consumer spending is a rising number of rich consumers whose spending habits are less affected by economic conditions. According to the Asia-Pacific Wealth Report 2012, published by Capgemini, the number of Korean high net worth individuals, or HNWI, which refers to people with US$1 million (S$1.22 million) or more at their disposal for investing in stocks or bonds, reached 144,000 in 2011. When it comes to the number of HNWIs, Korea was ranked fourth in the Asia Pacific region, following Japan, China and Australia last year.  [Asia One]

You can read the rest at the link.

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