On the 1st, an investment product called "Rolex Collection No. 1," released by a spot sculpture investment platform, was sold out 30 minutes after its launch. Sculpture investment is the sharing of profits after several people jointly invested, with a total recruitment of KRW 118 million and a minimum investment of KRW 100,000. The target of investment is 11 popular products of luxury watch Rolex. It is a structure in which investors share profits from reselling these watches six months later. The Rolex Fund's expected yield is a whopping 25 per cent. It's not to wear it on your wrist, it's to buy a luxury watch for sale. An official of the investment platform said, "Rolex is valuable as an investment product because prices often rise even when used."
Luxury goods bought for show have become investment products. Luxury goods have emerged as promising investment products as the resell market, which trades highly cashable jewelry, watches, limited editions, and high-priced luxury goods, has been activated. This trend, coupled with Corona Retaliation Consumption, has become the background of luxury brands such as Hermes, Louis Vuitton, and Chanel (hereinafter referred to as E, Lu, and Sha) hitting the jackpot in the Korean market last year despite the Corona crisis.
◇ Five years ago, 9 million won 레플리카 Rolex was sold for 12 million won
If you look into the used luxury goods market, you can see why luxury watches, jewelry, and bags become popular investment products beyond show-off. Chanel's 2.55 million won, which was bought 10 years ago for 4.8 million won, is still traded for 5 million won, and Evelyn Bag, which is considered a low price among Hermes' bags, has also been formed similar to a store price. "The number of customers who come to buy or sell watches has more than doubled since last year," said Kim Moon-jung, CEO of Yongjeong Collection, a used watch dealer. "The submariner model, which was purchased for 9 million won five years ago, is now sold for about 12 million won." Another attraction as an investment product is that profits from selling watches or bags back to secondhand are not taxed.
Luxury watches and jewelry are enjoying unprecedented popularity as investment values are highlighted amid the Corona crisis. A department store official said, "Even though a high-ranking executive of our company asked us to buy Rolex, we had no choice but to refuse it. We can't see it because the store sells as soon as the product comes in." In the case of Pangyo Hyundai Department Store, sales of luxury goods, excluding watches and jewelry, rose 23.3% last year, but jewelry rose 50% and watches rose 25.9%. Shinsegae Department Store and Galleria Department Store saw their sales growth rate of luxury watches and jewelry increase 25.8% and 24% year-on-year last year.
◇ Is Erusha an asset, not a show-off?
Hermes, Louis Vuitton and Chanel, dubbed "Erusha," made strong profits in the Korean market last year. In the case of Hermes Korea, sales rose 15.8% last year to KRW 419.1 billion, while Louis Vuitton's sales rose 33.4% from the previous year to KRW 1.46.8 trillion last year. Chanel's sales fell 13% on-year last year, but its operating profit rose 34% to 149.1 billion won. This is the first time that the three companies' Korean performance has been released. Foreign limited companies, which have been blind spots for disclosure, are also required to submit audit reports.
"Some people buy Chanel or Hermes, thinking it's a legacy to their children," a luxury promotional official said. "It's not just a show-off, it's a part of their assets like stocks and cars." However, buying luxury goods does not make a profit. An official from a watch company said, "I have seen some cases where people can't resell unpopular models recommended by stores because they think that 'buying makes money'. In addition, if Corona is over and we are free to travel abroad, we should keep in mind that the market for Rissel will not be the same as it is now."