What: Young South Korean consumers are abandoning luxury brands in favor of affordable "dupe" products, marking a significant shift in Asia's luxury market dynamics.

Why it is important: This consumer behavior change in South Korea, a key trendsetting market in Asia, could indicate a longer-term restructuring of the luxury retail landscape, particularly among younger demographics.

South Korea's young consumers are increasingly turning away from luxury brands in favor of budget-friendly alternatives known as "dupes." According to Daehong Planning's social big data platform D-Bigs, mentions of premium brands like Chanel, Louis Vuitton, Hermès, and Rolex have disappeared from the top 50 words associated with "open run" on social media in 2024. The practice of queuing for luxury goods has declined, with "open run" mentions dropping from 405,736 in 2023 to 340,560 in 2024. Industry experts attribute this shift to market saturation and diminished exclusivity. Popular alternatives include Daiso's $2.06 Son & Park colour balm replacing Chanel's $43.29 product, and Uniqlo's $34.29 utility bag as an alternative to the $247.35 Yoshida Porter bag. This changing consumer behavior extends beyond products to experiences, with young Koreans redirecting spending toward travel, particularly to Japanese cities and local destinations, reflecting a broader shift in consumption priorities.

IADS Notes: The shift in South Korean consumers' luxury spending habits mirrors broader transformations observed throughout 2024 and early 2025. The trend aligns with December 2024's industry-wide challenges, where luxury sales declined by 2% globally amid changing consumer priorities. This evolution is particularly evident in Asia, where June 2024 data revealed growing "luxury fatigue" and a preference for discreet consumption. The redirection of spending towards travel experiences and affordable alternatives reflects a regional pattern, exemplified by July 2024's surge in tourist spending in Japan, where favorable exchange rates attracted value-seeking shoppers. As luxury brands adapt to these changes, many have introduced lower-priced products under $500 to maintain market share, while simultaneously pivoting towards the US market as Asian consumer behavior continues to evolve. This multi-faceted transformation suggests a fundamental restructuring of luxury retail, where value, experience, and authenticity are increasingly prioritized over traditional brand prestige.

Young South Koreans forsake luxury brands for ‘dupe’ products