Affluent consumers in Korea continue to spend despite the recession, reveals Synovate PAX survey

9 November 2009

SEOUL — Synovate, a leading global market intelligence company, recently released its 2009 PAX survey findings, revealing that affluent consumers in Korea continued to spend despite the recession in the past year. Average monthly billing on credit cards increased from US$1219 (Q2 2008) to US$1273 (Q2 2009). Elites in Seoul are also the highest group across the Asia Pacific region in owning luxury products: from designer clothes and leather goods (23.3% of Korean elites have this) to quality accessories and footwear (11.9%).

In its 13^th year, Synovate PAX is the region's most comprehensive study of elite adults, tracking media and digital consumption, prosperity, and influence across 11 markets: Hong Kong, Singapore, Korea, Taiwan, Thailand, Malaysia, India, Indonesia, the Philippines, Japan and Australia.

The survey is conducted year-round, and Synovate spoke with 1,784 affluent residents in Seoul to get the 2009 results.

Elite Koreans vital for many categories

An indication of the power of the rich, almost one third (31.3%) of elite Koreans have gone on one or more leisure trips in the past 12 months, compared to 23% of the general population.

Sixty-five percent of affluent consumers in Seoul own a digital video camera, which is 12% more than the general population. This is also seen with credit card / charge cards (92.4% of affluent consumers vs. 78% of the general population), private cars (89.3% vs. 82%), laptops (38.7% vs. 30%), SLR digital still cameras (17.7% vs. 12%), and luxury watches (16.5% vs. 15%). Please refer to the following figure for a graphical comparison.

Ownership of several product categories between affluent consumers and the general population in Seoul

Continue to spend in good times and bad

Korean elites are the top group across the Asia Pacific region in owning luxury products, from designer clothes and leather goods (23.3% of Korean elites have this) to quality accessories and footwear (11.9%). Despite the financial crisis, results show that more elite Koreans own a luxury watch, from 13.6% last year to 16.5% this year. This signifies purchases have been taking place during the downturn.

"Elite Koreans have always enjoyed their luxury goods. Despite the financial crisis, purchase of high end items such as luxury watches has increased. The affluent groups do not want to give up their lifestyle, no matter the condition of the economy. This is an insightful finding for marketers, as they should not eliminate their advertising budgets but instead target them to effectively to reach this group which is still spending as usual," said Kyungeun Chang, Managing Director of Synovate in Korea.

Ownership of technology

In Seoul over the past year, there has been a 15.5% increase in ownership of computer printers / scanners among elite consumers, a 10.9% increase in ownership of digital still cameras, and a 3.9% increase in the ownership of laptop computers.

Smartphones are also on the rise. Over double the number of elites from last year now have a hybrid mobile phone-capable unit in their pocket, from 4.2% last year to 9.6% this year.

Furthermore, findings show that 90.5% of elites currently own a mobile phone with Internet access and camera functions.

Still high in financial products ownership

More elite Koreans own one or more financial products this year compared to last year, from 86.5% of elites to 91%. Increases are seen in unit trust fund / mutual fund (from 30.1% to 36.4%) and life insurance (from 72.9% to 76.7%).

Download PAX 2009 Korea Fact Sheet (PDF 70Kb)

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