The move to promote Korean stars as brand ambassadors is a strategic choice that aims to open its scope and increase revenue.
According to Boston Consulting Group, in 10 years, from 2009 to 2019, Asia went from accounting for 19% to 30% of the retail market of the luxury fashion world. It is predicted, in 2025, the Asian market (including Japan, Korea and China and the rest in the continent) will account for 54%, more than half of global luxury consumption market share.
In Korea, the purchase power for luxury items in 2022 reached 16,8 billion USD, with the average spending per capita for this market reaches 325 USD, higher than that of China (55 USD) and the US (280 USD). A pivotal shift to Asia with a focus on Korean market is a basic and necessary move for any major fashion brand at this point.
As of now, Korea is growing to be more bustling and active than ever: Balenciaga chose Korea to be the first destination in the world to sell their sports shoes in 2022; Chanel announced their plan to open a boutique in Seoul to cater to the VIPs; Gucci opened the Gucci Osteria restaurant in Itaewon; Pop-up stores by Dior, Bottega Veneta and Burberry mushroomed in Seoul along with flagship stores by Saint Laurent and CELINE.
More exceptional individuals and brands are changing the course of development of the fashion indusry. Woo Yung Mi, Juun J, Yoon Ahn (Ambush), Hyenin Seo along with Gentle Monster, Ader Error, 87MM, ADLV, Reike Nen, Yuul Yie are the domestic forces that are working interdependently with international resources to create a dynamic scene in the world of luxury fashion.
Showbiz stars are one of the gateway to enter into that field of dynamic relationships.
The development of a complex networks of social media has changed the attitude of the general audience to celebrities and stars. They are no longer ignorant to nor captivated by the mysterious qualities of Hollywood stars or US-UK pop superstars. Instead, they invest attention to the second-by-second update of stars, or Korean stars, on social media.
The luxury brands are making the most of the parasocial relationships between gen-Z consumers and the stars. The promotion of K-stars to fashion ambassadors means they acquire the fanbase of that star, especially the media impact value brought by the fandom. Jisoo (BLACKPINK) receives much perks from Dior simply because the idol has increased the revenue for the brand from 104.6 billion won to 211.5 billion won. According to Launchmetrics, the singer can bring 7.2 million USD if each of her post reaches 1,152 views.
Other cases were the appearances of Song Hye Kyo at the Fendi show and Jun Ji Hyun at the Burberry show. They managed to gather the attention of the press and fans at ease.
In 2021, Louis Vuitton (LV) obtained a media value of436,000$ for a post in the Fall/Winter fashion show 2022. After BTS’s contract with LV ended, they are sought after by many brands. According to Investing, the Dior stock achieved all-time high after they called Jimin (BTS) their next Global Ambassador.
In the first quarter of 2022, the Fashion & Leather Goods Division at LVMH reported an increase of 30% thanks to multiple appointment of Asian stars. CELINE achieved two-digit growth in China from 2018 to 2021 by employing a succession of stars such as Lisa (BLACKPINK), V (BTS) and Park Bo Gum at the “CELINE Homme 2022”.
Fans will also go to any length to purchase the items worn by the stars. JungKook (BTS) appearance on the cover of VOGUE Japan got the Prada Gabardine Blouson Jacket sold out, despite the hefty price of 3,000 USD. The same happened to LV’s Clock Intarsia Jumper worth or 1,000 USD.
From LVMH to Kering Group and Prada Group, these luxury conglomerates are seeking the benefits brought by K-stars in regards to media value, increased share and increased revenues. Korean stars such as Rosé, Jisoo (BLACKPINK) are being the ambassadors of two brands simultaneously. Whereas Fendi have gathered a stellar lineup of Song Hye Kyo, Kim Da Mi and Zico.
Source: K14
