Korean online fashion brands are emerging as new forces in the shopping industry

2013-11-15 16:49

Online brands emerge as new force

By Rachel Lee
Online fashion brands are emerging as new forces in the shopping industry.  Over the last few years, quite a large number of up-and-coming clothing manufacturers have grown fast enough to compete with established brands in the market. According to industry sources, consumers have increasingly shown interest in those online clothing brands for both the quality and price.“Not only the new brands, but the whole online clothing industry has improved in terms of quality and reflected the industry trends very well, which means it understands what consumers need and want,” said a designer at a men’s online clothing brand.
Brands such as Mamagari and Vivastudio have become popular, particularly among men in their 20s and 30s. According to the apparel-makers, all the products are homemade and high-quality materials are used to produce the goods.
“I and my friends have become big fans of online fashion brands. They offer some really good designs at reasonable prices. I used to have this perception that online brands lack quality so their clothes get worn out quickly, but that is not the case anymore. They are a lot better now, I think,” said Kim Jong-suk, a 20-year-old student living in Seoul. “The T-Shirt Museum is one of my favorites. It has some nice designs that fit my body well.”
Some of the popular online brands have succeeded in penetrating into the offline market, and going even further ― jumping into overseas markets in countries such as China. Men’s casual wear makers Brownbreath and Covernat are a couple that have opened offline shops.
“There are hundreds of online clothing brands in the country, and a lot of them sold similar items, which bored consumers. But these days, they have invested money to develop their own designs with good materials,” said the designer. “It has led to some items being sold out completely. Consumers now see online fashion brands comparable to the established ones in department stores.”
Women’s online fashion brands have also become so popular that some are entering the country’s major department stores as well as expanding existing offline shops.
Magjay, a women’s clothing brand launched in 2009, has already opened nine stores in central and southern Seoul. The women’s clothing manufacturer, which targets working women, offers a variety of office looks and formal items that also match well with casual wear.
According to the company, its total monthly sales recently hit the one hundred million won mark, and it started distributing to department stores this fall.
Women’s clothing and accessories maker Naingirl is also one of the successful brands in the industry, with monthly sales over one million won. The company runs four offline stores in the city and it opened two more this year in shopping mall Lotte Fitin.
Industry experts say the female online clothing brands, which mainly target working women in their 20s and 30s, have consistently shown unique designs that also mix and match well with daily casual wear. The price is another important factor that has led them to get where they are now.
“As an increasing number of working women prefer to buy online, they look for something different at the same time. There still exist many fashion brands that sell similar items of low quality. Consumers will never fall for them just because they are cheaper. They compare materials, designs and prices very carefully. The online retail industry needs to be more specialized,” the designer said.

Unknown's avatarAbout bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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