The Real Reason Luxury Brands Pay Millions To Get K-Pop Idols As Global Ambassadors
Whether K-Pop idols are from veteran groups like EXO and Girls’ Generation…
…or newer groups like ENHYPEN and NewJeans, many global brands are determined to recruit them as brand ambassadors.
The French jewelry brand Cartier even doubled the amount of Dior‘s contract fee just to snag BLACKPINK‘s Jisoo.
There are two main reasons why luxury brands go all out to secure famous K-Pop idols as brand ambassadors.
The first reason is influencer culture. As worldwide artists, K-Pop idols bring wider recognition to the brand and bring in a new demographic of customers. HYBE‘s rookie group NewJeans is a perfect example of this, influencing the younger generation into wearing luxury brands.
K-Pop idols’ appearances in luxury fashion, on social media and other platforms, make it easier for children to become aware of these brands and sometimes even discuss them.
A colleague teacher who teaches in Gangnam frequently notices students wearing luxury brands like Moncler, Burberry, and Fendi. And there are more such students as they get into middle school and high school.
— Elementary school teacher Kim Mi Hyeon
The second reason is Korea’s strong brand loyalty. Koreans are such high consumers of luxury brands that real estate advisor Nick Bradstreet, who helps expand luxury brands like Chanel and Louis Vuitton, revealed that “Korea is making significant strides in the luxury industry, surpassing Japan and China to become the most important market in Asia.”
Korea has even become a “vital barometer” of whether or not a luxury brand will succeed in the Asian market. They’re one of the biggest hubs for luxury brands, second only to Japan, and even doubled profits for brands like Moncler despite the pandemic.
A study conducted by Bernstein, a US investment firm, found that Seoul stands as a global luxury brand haven with 221 outlets, ranking second worldwide just behind Tokyo.
— Korea JoongAng Daily
While K-Pop idols naturally increase luxury brands’ profits with their fan base, Korea being major spenders also plays a big role in making that happen.
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