S.Korea sees fever for luxury goods wane in post-COVID-19 era

South Korea is seeing a gradual decline in the open run, or the practice of customers standing in line before a brand's opening at a department store that symbolized the luxury boom after COVID-19, due to the economic slowdown.

This system was a must for luxury brands who wanted customer convenience ahead of a store's opening. Following luxury watch maker Rolex, global beauty titan Chanel early this month eliminated this method given lower demand.

Sources in the luxury goods industry on Monday said Chanel sent an official notice to domestic department stores on July 3 of its temporary suspension of open runs from July 10. Under this method, customers receive a number before a sales outlet opens at a department store and after opening, they can enter the store to buy products in the order of their numbers.

Adopted in 2020 to reduce the inconvenience of waiting, this system emerged as a daily routine as the coronavirus blocked shoppers from getting their luxury item fix abroad.

As a result, luxury item outlets at department stores no longer give shoppers a waiting number before opening and instead use a first-come, first-served policy. With Chanel's document including the phrase “temporary suspension,” however, the revival of the open run is possible if lines get too long.

Early last month, Rolex also eliminated the open run but still accepts reservations online.

Thus famous chic brands face drastically reduced demand for luxury goods this year.

“In the past, many days had 100 or 200 people line up before a store opening but those days have largely disappeared,” a department store source said. "With the growth of overseas travel, the fever for luxury goods that was hot during the pandemic has cooled and the open run parade has declined."

Write to Ji-Yoon Yang at yang@hankyung.com