"In Korea, I stand in a long line outside the department store from 5 a.m. to buy a $9,500 (11 million won) Chanel bag."


On the 15th local time, Bloomberg News focused on the appearance of Korean consumers conducting a so-called 'open run' (running to buy items as soon as the store door opens) to buy a French luxury brand Chanel bag on the 15th local time.



The news agency said, "Even in the deepest agony of the corona pandemic, you can't see people stocking up on meat, toilet paper or pet food in Korea. Instead, they have developed a new custom, which starts at 5 a.m. in long lines outside department stores and 9 It's buying a $1,500 Chanel bag." He posted a picture of Koreans waiting in tents in front of the store.



The news agency cited the scarcity of Chanel products, Korea's active resell (resale) culture, and soaring real estate prices as reasons for Korea's 'open run culture'.



"Today's cheapest Chanel, money can't buy everything"


The news agency said, "After the Corona 19 pandemic, overseas travel opportunities were limited and fixed expenses decreased due to 'social distancing', etc., so Chanel bag shoppers started lining up," Chanel Korea said four times this year. increased, but explained why demand increased further.



Jo Mo, who was waiting at the entrance of the department store, said, "It will be the cheapest today because Chanel keeps raising prices.



The news agency also pointed out that the resell market in Korea is active because of the rarity of Chanel.



According to the industry, the domestic luxury resell market is expected to reach 7 trillion won this year. Chanel is in the spotlight as a means of finance to the extent that the word ‘sha-tech (Chanel + finance)’ has arisen.



“It’s been about a year since I started reselling Chanel handbags, and I get out of the house at 4 a.m. and buy as many handbags and wallets as possible,” said Mo Park, who re-sells Chanel handbags as a side job. The market is going crazy,” he said, telling the current state of the resell market.



“I bought the Chanel mini flap bag in July 2017 at 3.24 million won, and now it’s 5.39 million won, up 66%,” said a millennial generation who buys Chanel products through resellers because it is difficult to stand in line at dawn. "I would have made more money if I had bought a Chanel bag instead of investing in stocks a few years ago."



Koreans' love for luxury goods was also confirmed in statistics.

According to Euromonitor International, a market research firm, the size of luxury consumption in Korea was $14.2 billion (16.8 trillion won), up 4.6% from the previous year.

It is the 7th largest market in the world.



According to Bloomberg statistics, Chanel earned 8.5% of its total sales in Korea in 2020. Considering that there are only 9 Chanel stores in Korea, the amount sold per store is huge.



2030 "I can't buy a house anyway, so I want to buy Chanel"


Telecommunication analyzed the phenomenon that the 2030 generation is passionate about luxury goods and that there is a 'surge in house prices in Korea' in the background.

“With the surge in house prices in Korea, the 2030 generation has fallen into a sense of loss that they will never be able to buy a house. Instead, they are spending their money on things they can enjoy now,” he said. .



“According to KB Financial Group, the average price of apartments in Seoul from 607 million won in 2017 when President Moon Jae-in took office has more than doubled and rose to 1.24 billion won as of November,” he said. For the 2030 generation, this is a huge burden.”



Meanwhile, experts predict that Korean shoppers' Chanel open run and resell transactions will continue next year.

Because Chanel is likely to raise prices again next year.



In this regard, Chanel said, "When adjusting the price, we are adjusting the price difference by market so that the price difference by market is not excessive, taking into account not only exchange rate fluctuations but also price changes such as production costs and raw materials."