Buying Luxury Goods
Before you read: Some questions to help you to think about the topic.
What is one of the most luxurious things you have ever bought?
Why did you buy it?
What did you friends like about it?
A famous international research firm has found that Korean consumers' love for luxury goods or high-end goods may have exceeded even that of the Japanese, which is even more interesting considering their per capita income.
The company surveyed 1,000 Korean customers who spend more than 1 million won (US$938) a year on luxury shopping. Of them, 200 were considered "luxuryholics" who spend more than 10 million won.
Of the respondents, 45% said, "Having a luxury item is no longer a special thing." The figure has doubled from 21% in 2010.
The research said that the Korean luxury market has increased 12 percent every year since 2006, with last year's sales surpassing US$4.5 billion.
As of April, the sale in department stores, the main channel for the sale of Korean luxury goods, soared almost 30 percent compared to the same period last year.
With the luxury spending becoming more prevalent among Koreans, their tastes have also been diversified and sophisticated.
Twenty-six percent of the respondents agreed that "I have come to prefer designers' brands that make me special compared to others."
Meanwhile, Korean consumers are also becoming more sensitive to prices.
Compared to the consumers in the United States, Europe and Japan, Korean consumers are still believed to prefer to buy luxury goods on regular prices. But more and more are wanting discounts and have become active in Internet searching for cheaper prices, the firm said.
Of the respondents, 40 percent said they search the Web before purchasing luxury goods, but they were careful about buying online.
Korean consumers prefer to use the Internet for information before buying high-end goods. Even though their online searching may not mean that they buy something directly, it's also true that the importance of the Internet is getting bigger in consumer behaviors, said another consultant in the Seoul office.
Guessing meaning from context
Try to guess the meaning of the words in bold and match them with their closest meaning from the choices in the right. The answers are below the table.
|
high-end goods |
A |
1 |
People who are addicted to expensive experiences and products/brands. |
|
per capita income |
B |
2 |
Exceed, go beyond, beating |
|
luxuryholics |
C |
3 |
Most common way that something goes |
|
surpassing |
D |
4 |
Luxurious, up-market, expensive, top-of-the-range |
|
main channel |
E |
5 |
Complex, opposite of simple, higher thoughts or attitudes |
|
diversified |
F |
6 |
Very common |
|
sophisticated |
G |
7 |
A lot of variety |
|
prevalent |
H |
8 |
How much each person in a country makes/earns in a year on average |
A=4, B=8, C=1, D=2, E=3, F=7, G=5, H=6
Some example sentences using the new words to help you to better understand their meaning.
1. Galleria Department Store is a place where you can expect to buy a lot of high-end goods.
2. The per capita income of Koreans has increase very much since 30 years ago
3. I once dated a girl who was a luxuryholic, I spent all my money to keep her happy.
4. The number of cafés in Seoul is so prevalent that I think per square kilometer it is surpassing New York.
5. These days the main channel for buying computers is through online companies like GMart.
6. New York is one of the most diversified places for food and cultures of people in the world.
7. Most people would agree that city people are much more sophisticated than country people.
Some discussion questions using the new words to help you better understand the word meaning and how to use them correctly. Try to use the words in your answer.
1. From your experience, would you agree with the reading that Koreans are buying more high-end- goods?
2. When selling to another country, why is it important to consider per capita income?
3. If you are a marketing person selling to luxuryholics, where and how would you advertise to them?
4. After you read this story, do you think that Chinese could surpass Koreans for buying luxury brands?
5. If you work and sell products, what is the main channel for your products or services? Why are department stores still the main channel for selling luxury goods?
6. From the reading, why are Koreans’ tastes diversifying? How are Koreans’ tastes becoming more sophisticated?
7. Café’s are much more prevalent now in Seoul, what next trend do you feel could become prevalent here? Or in the world?
ECK Education
