Growth of the luxury markets from “YOLO” spending

Recently, there had been a great spending increase by young adults around the age of 20s, recognized as the big spenders for luxury products. As “YOLO Life” is becoming a trend within the group, the purchasing rate of the group is much higher than other age groups. It is a global trend that young adults are becoming the big spenders of luxury products. The luxury brand companies and the industry is increasingly more focused on online shopping malls to target young adult luxury item shoppers.

In the past 25th, the online portion of the global company of luxury products, Louis Vuitton Moet Hennessy (LVMH)’s 24S, known as their online-shop entered the Korean luxury market by adding Korean language and related services, confirming the significance of the luxury market industry in Korea. In addition, the country’s premium outlets facilitated by top-rated malls, as Lotte and Shinsaege shifted their momentum to focus on online shopping.

The consistent problem of the luxury market, the counterfeits

Although the increase in growth of the luxury markets persists, the problems of counterfeit products still yet been solved. Even a simple search about luxury products online, financial damages caused by counterfeit products easily appear on the first page. In addition, a 30-year-old counterfeit luxury product seller had been sentenced for a felony offense. The felon executed the fraudulent activity by copying the brand symbols and trademarks and placed them on the products that were being sold on the site, selling about 25 thousand products, approximately equal to 12.7 million dollars in real product value.

As the sale of luxury products have become active through social networking sites nowadays, the damages related to the sales had been increasing as well. It is especially difficult to track all the sales that happen through social networking sites since most of the sales are done privately through direct messages between the merchant and the purchaser, so it is becoming a critical issue. The products purchased through the social networking sites are not entitled to a refund since the sales are done privately and even if the product is a fake, there are not much of ways to recover the lost or financial damages.