S. Korea fashion industry reshaping under way

October 24, 2013 Leave a comment

S. Korea fashion industry reshaping under way

Kim Ji-mi

2013.10.23 17:52:37

South Korea’s fashion industry dynamics are changing. For start, Cheil Industries, a leading player in the industry since 1970s, agreed to sell its fashion unit to Samsung Everland.
Cheil Industries, LG Fashion and Kolon Industries had dominated the fashion market, but their grip has dismantled since 2010. Now, Kolon Industries’ fashion operations generate 1.3 trillion won ($1.2 billion) in sales, only one third of the company’s total sales of over four trillion won. The fashion operations are no longer a flagship business of Kolon Industries. In contrast, E-Land has launched low and mid-priced brands and sold them in standalone stores and earned two trillion won in sales last year, surpassing Cheil Industries to take the top position. The sales figure excludes another two trillion won it brought in from abroad. Cheil Industries garnered 1.5 trillion won in sales in the local fashion market. The dominance of the three fashion conglomerates is giving way to an emergence of multiple companies, as large retailers including Lotte Department Store, Shinsegae Group and Hyundai Department Store are aggressively pushing into the industry. Shinsegae Group’s fashion arm Shinsegae International imports and sells luxurious brands such as Armani, Marni, and Dolce & Gabbana. Shinsegae International is also promoting domestic brands including Vov, G-Cut and Vidivici. Lotte Department Store’s global fashion business division has unveiled Niceclaup, Thyren, J-Press and Furla. Hyundai Department Store Group’s affiliate Hyundai Home Shopping, meanwhile, acquired local women’s clothes company Handsome, and opened new brand Iro.

Filed under Macro Trends

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