K-pop and K-drama... How about K-fashion?

Korean fashion brands will actively target the global market this year as they are experiencing a domestic recession due to high inflation and climate change.

Handsome Corp., a leading apparel maker under the Hyundai Department Store Group, is going after the French market with its private brands such as System and Time by expanding its distribution channels.

For instance, System is expected to open a store in one of the major department stores in Paris as it is currently running a temporary store at Galeries Lafayette Haussmann in Paris since July last year.

Industry insiders suggest that being open for an extended period is one of the procedures typically aimed at securing a spot in department stores.

Time is expected to follow System’s lead in opening a flagship store and a store at a department store in Paris after having garnered high interest among local buyers at last year’s Paris Fashion Week.

"As Handsome’s private brands have high loyalty, we believe there will be opportunities for global market expansion. Starting with Paris, we will gradually expand the influence of our fashion brands and lead growth through synergy with our domestic business,” said an official from Handsome Corp.

This move comes as Handsome Corp.'s operating profit for last year is estimated to have decreased by 28.3 per cent compared to the previous year, totalling 72.1 billion won ($48.88 million), according to market intelligence firm FnGuide. This decline is a significant contrast to consistent operating profit of over 100 billion won since 2019.

Last year, the domestic economic slowdown, coupled with record hot weather, led to weak sales of higher-priced fall and winter apparel. In particular, Handsome has many brands focused on high-end outerwear such as coats, making the fourth quarter its most crucial season.

Premiumization is a strategy employed by LF Corp., another leading local fashion retailer, to compete in the Asian market against lower-priced products from countries like China and Vietnam.

Hazzys, LF Corp.’s casual brand, offers products with pricing, design and material quality at the same level as in Korea to promote itself as a premium brand.

Last year, Hazzys' combined sales in China, Taiwan and Vietnam increased by 15 per cent on-year. In China alone, sales grew by 30 per cent.

K-fashion shifts focus to global expansion as domestic sales struggle, with brands eyeing premium markets in Europe and Asia.

System's presentation at Paris Fashion Week 2024 F/W (Handsome Corp.)

Korean fashion brands will actively target the global market this year as they are experiencing a domestic recession due to high inflation and climate change.

Handsome Corp., a leading apparel maker under the Hyundai Department Store Group, is going after the French market with its private brands such as System and Time by expanding its distribution channels.

For instance, System is expected to open a store in one of the major department stores in Paris as it is currently running a temporary store at Galeries Lafayette Haussmann in Paris since July last year.

Industry insiders suggest that being open for an extended period is one of the procedures typically aimed at securing a spot in department stores.

Time is expected to follow System’s lead in opening a flagship store and a store at a department store in Paris after having garnered high interest among local buyers at last year’s Paris Fashion Week.

"As Handsome’s private brands have high loyalty, we believe there will be opportunities for global market expansion. Starting with Paris, we will gradually expand the influence of our fashion brands and lead growth through synergy with our domestic business,” said an official from Handsome Corp.

This move comes as Handsome Corp.'s operating profit for last year is estimated to have decreased by 28.3 per cent compared to the previous year, totalling 72.1 billion won ($48.88 million), according to market intelligence firm FnGuide. This decline is a significant contrast to consistent operating profit of over 100 billion won since 2019.

Last year, the domestic economic slowdown, coupled with record hot weather, led to weak sales of higher-priced fall and winter apparel. In particular, Handsome has many brands focused on high-end outerwear such as coats, making the fourth quarter its most crucial season.

Premiumization is a strategy employed by LF Corp., another leading local fashion retailer, to compete in the Asian market against lower-priced products from countries like China and Vietnam.

Hazzys, LF Corp.’s casual brand, offers products with pricing, design and material quality at the same level as in Korea to promote itself as a premium brand.

Last year, Hazzys' combined sales in China, Taiwan and Vietnam increased by 15 per cent on-year. In China alone, sales grew by 30 per cent.

Juun. J at Reel Department Store in Shanghai (Samsung C&T Fashion Group)

The same goes for Samsung C&T Fashion Group’s private brand Juun. J is also establishing its brand identity as a premium brand in foreign markets by opening a store at Shanghai’s luxury Reel Department Store in August last year, along with pop-up stores in the UK and Italy.

"Although the Chinese market is struggling, there is demand for Korean premium brands, and in Vietnam, as income levels rise, there is an increasing preference for premium brands. Fashion has a higher proportion of loyal customers, so brands are focusing more on securing a solid customer base that appreciates the brand's image or design in the long term, rather than aiming for short-term sales," said an industry insider.

The Korea Herald

Asia News Network