The growth of the global and domestic luxury market
The global luxury market is growing increasingly fast. Domestically, in Korea, the luxury market has experienced a growth of 4.6% since last year, which is equal to approximately 13.8 trillion won. Korean luxury market has ranked 4th in the world and it is continuously growing. Korean luxury market has been growing very quickly, which is noticed significantly throughout the world. Accordingly, Louis Vuitton and other luxury brands have realized the potential growth of the market and they are developing strategies to increase revenue and profits from the market.
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.
GUHADA, supporting the extinction of the counterfeit goods
Even when the luxury product spending is increasing, the sales of counterfeit products still persist in the market. In the middle of this, GUHADA platform for sales of luxury goods is under development and soon to be released in the second half of 2019, to provide a solution for the problem. Many functions are being developed for GUHADA, so that the consumers can feel safe to purchase luxury products on the platform. In any case that the consumer purchases counterfeit products on the platform, there are safeguards and policies that can remedy the situation, which would make consumers trust shopping on GUHADA.
One of the methods for preventing purchasing of the counterfeit products is an authentication of the products through a professional appraisal. This is a function that when consumers are purchasing luxury products on GUHADA, the product goes through an appraisal and if the product is appraised to be counterfeit, the entire payment is refunded. Other than such function, there are detailed processes and services that GUHADA offers. The processes and services include vendor verification system, insurance service, a blacklist of the negatively rated sellers.
GUHADA, online shopping mall for the YOLO spenders
The YOLO spenders in 20s are increasing quickly and through such a trend, the online luxury markets are growing vastly. GUHADA is being developed in part to support the YOLO luxury product buyers and its developers are working on producing a user-friendly online platform.
GUHADA, supporting the extinction of the counterfeits and satisfying the luxury product shoppers’ needs
Through such focus and development, TEMCO team is developing GUHADA platform that extinguishes the counterfeit products and satisfy every luxury product shoppers.
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