The flaunting of wealth mentality in Korean society

December 11, 2022

Ujin Kim, Ichen Wu

SEOUL - The way people express themselves since the COVID-19 pandemic has led to a continued rise in luxury sales and new incentives to show off their wealth.

Young people who have bought luxury brands: Dior and Balenciaga. (December 3,2022)

"I accidentally FLEX again” “Of course, FLEX” The word FLEX has come to mean "flaunt" or "show off" in the hip-hop world. Has become a buzzword among young people recently. With the popularity of SNS, FLEX culture has become ubiquitous in Korean society, leading a new consumption trend. How far can Korean society buy luxury goods? Why do they show off their wealth?

Open Run Open Run refers to the phenomenon of waiting for a department store before it opens and then running in to buy something as soon as the door opens. In order to ensure the rarity of luxury goods, Chanel has introduced a purchase restriction policy. So people line up at the

door all night just to take a number to buy luxury goods. There may also be those who rely on queues to earn money. Interviewee Ms. Jeong said, “I am doing my part-time job which is buying Chanel for others.” In order to buy luxury goods, people are willing to use various ways to achieve it.

People lined up for Rolexes before the department store opened. (December 3,2022)

The never-ending procession of consumers of Hermes after the department store opened. (December 3,2022)

In 2021, the global luxury market is estimated at 350 billion U.S. dollars, with a growth rate of 13%. Korea's luxury brand market was worth 14.1 billion U.S. dollars last year. It is a 5 percent increase from 2020, ranking seventh in the world.

But prices for luxury brands continue to rise. Chanel experienced four price increases in 2021. Louis Vuitton, which raised its prices five times last year, raised its prices again early this year. Prada also raised prices for the fourth time this year.

Data from Euromonitor International.

Data from Euromonitor International .

Even though the price keeps rising, the sales are still on the increase instead of decreasing, why? The Veblen effect is a psychological phenomenon in which consumers' demand for a commodity increases due to its high price and reflects people's spendthrift consumption. MZ Generation 's love of luxury goods comes from the pursuit of spiritual satisfaction. In particular, in recent years, as the COVID-19 pandemic has spread, people have shifted their focus to spending on items that they can feel satisfied with. Yongjun Sung, a school of psychology professor at Korea University, said, "Young people who cannot go abroad due to the COVID-19 pandemic and have no other means of consumption are buying luxury goods as a way to express themselves," adding, "They also want to show others that they are still capable even when prices go up." The FLEX culture in MZ Generation also supports the consumption of luxury goods.

Customers who buy FENDI.(December 11,2022)

Customers who buy other luxury brands.(December 11,2022)

FLEX culture on SNS Instagram or YouTube has many videos of luxury goods unboxing or pictures, the core ideas are to show off their life. The MZ Generation no longer see luxury goods as mere commodities, but as new means to express their individuality and status. The interviewee, Ms. Jang said, "Since I am a high school student, it is not convenient for me to carry it out to

school, so I post it on social media." Another interviewee, Ms. Kim said, "Even when I take a selfie, I accidentally expose luxury goods."

FLEX tags on SNS. (December 11,2022)

Since the COVID-19 pandemic in 2019, the number of ways people can spend money has changed dramatically, and people are buying luxury goods to express themselves. People express their ability by buying luxury goods and showing them online to attract others' attention. Some people feel satisfied by watching these videos and want to buy. Therefore, people should consume rationally, look at luxury rationally, and have their own standards.