[E-Daily Reporter KYUNG GYEYOUNG ] As the focus of luxury consumption shifts from handbags to jewelry and watches, the status of high-end jewelry and watch brands is becoming just as important as that of “Erusha” (Hermès, Louis Vuitton, and Chanel). The department store industry is actively expanding its lineup of major jewelry and watch brands and establishing dedicated sections to strengthen its competitiveness.

According to industry sources on the 12th, Van Cleef & Arpels is scheduled to open a store at the HYUNDAIDEPARTMENTSTORECO.,LTD(069960) Apgujeong Main Store next month. With the Apgujeong Main Store bringing in Van Cleef & Arpels to join Cartier, Tiffany, and Bulgari, HYUNDAIDEPARTMENTSTORECO.,LTD will now feature all major jewelry brands at both its Apgujeong Main Store and Pangyo branch.

Lotte and Shinsegae Co.,Ltd., which have already brought all five major jewelry brands—Cartier, Tiffany, Bulgari, Van Cleef & Arpels, and Graff—to their flagship and other major locations, are striving to differentiate their jewelry brand portfolios. Lotte Department Store successively introduced “Chloisu,” a jewelry brand founded by a Korean master of chilbo (enamelwork), at its flagship store in May, followed by “APM Monaco,” a silver jewelry brand popular among the MZ generation overseas, in June. #Shinsegae Co.,Ltd introduced the British high-jewelry brand “Jessica McCormack” at Bunder Shop Cheongdam in May, and last month, it opened a dedicated jewelry section at its Gangnam branch featuring brands such as Kirin and Messika.

As for watches, no department store yet carries all three of the so-called “world’s top three” luxury brands: Patek Philippe, Audemars Piguet, and Vacheron Constantin. Lotte Department Store’s Main Store and Shinsegae Co.,Ltd’s Centum City branch carry Patek Philippe and Vacheron Constantin, respectively. Shinsegae Co.,Ltd.’s Gangnam branch houses Audemars Piguet and Vacheron Constantin, while HYUNDAIDEPARTMENTSTORECO.,LTD.’s Apgujeong Main Branch features Vacheron Constantin. Lotte Department Store recently attracted the first Korean stores for the high-end watch brands “Jacob & Co.” and “Leffe 1839” in quick succession, while HYUNDAIDEPARTMENTSTORECO.,LTD expanded and renovated its Rolex store at the Trade Center branch last January.

The reason the department store industry is focusing on attracting jewelry and watch brands is the explosive growth in demand for luxury jewelry and watches. Unlike handbags, jewelry and watches are not as sensitive to trends and have low depreciation rates, making them recognized as sound investments. The recent rebound in the marriage rate, which has boosted demand for engagement rings and wedding gifts, has also played a role. The domestic luxury market features robust offline demand—with offline purchases accounting for 87.3% of total sales last year (according to Euromonitor)—making this a sector where department stores hold a competitive advantage.

This demand is reflected in the numbers. Last year, the sales growth rates for luxury jewelry and watches—35% at Lotte, 36.5% at Shinsegae Co.,Ltd, and 35.3% at Hyundai—outpaced the overall luxury sales growth rate, which remained in the 10% range.

This trend continued in the first half of this year. Sales of luxury jewelry and watches at the three major department store chains recorded growth rates in the 60% range compared to the same period last year: △Lotte 65% △Shinsegae Co.,Ltd (jewelry 67.9%, watches 31.2%) △HYUNDAIDEPARTMENTSTORECO.,LTD 60.2%. This is higher than the overall luxury sales growth rate, which was in the 30% range. At Galleria Department Store’s luxury wing, while overall luxury sales rose by 20%, sales of luxury jewelry and watches increased by 40%.

An industry insider noted, “As the ‘quiet luxury’ trend—where logos are not prominently displayed—continues, these items have become a means of self-expression in everyday life, and their investment value as safe assets is also coming to the fore,” adding, “The department store industry will likely seek to strengthen its competitiveness by actively attracting high-end jewelry and watch brands.”