Korean Fashion Brands Expand Globally with Premium Strategy, Following K-Beauty's Success | Be Korea-savvy

Korean Fashion Brands Expand Globally with Premium Strategy, Following K-Beauty’s Success


Korean fashion companies are pursuing international expansion with an emphasis on premium positioning and distinctive design. (Image courtesy of Yonhap)

Korean fashion companies are pursuing international expansion with an emphasis on premium positioning and distinctive design. (Image courtesy of Yonhap)

SEOUL, Jan. 13 (Korea Bizwire) — In a significant shift from K-Beauty’s initial value-focused approach, Korean fashion companies are pursuing international expansion with an emphasis on premium positioning and distinctive design, industry sources reported on January 12.

Major Korean fashion houses are increasingly looking overseas amid domestic market challenges, including economic slowdown and unusual weather patterns affecting seasonal sales. Unlike K-Beauty brands, which initially gained market share through affordable products, Korean fashion brands are positioning themselves in the premium segment to avoid direct competition with lower-priced offerings from China and Vietnam.

LF’s casual brand Hazzys exemplifies this strategy, maintaining identical quality standards and pricing in China as in Korea to establish itself as a luxury brand. The brand’s combined sales in China, Taiwan, and Vietnam increased 15% year-over-year, with Chinese sales alone growing 30% in 2024. LF has also positioned its menswear brand Maestro in upscale locations such as Trang Tien Plaza, a landmark for Hanoi’s affluent shoppers.

Samsung C&T’s fashion division has made similar moves, with its Juun.J brand opening a standalone store in Shanghai’s upscale Réel Department Store last August, while also launching pop-up stores across Europe, including the UK and Italy.

“While China’s economy may be struggling, there’s still strong demand for Korean premium brands,” said an industry insider. “In Vietnam, rising income levels are driving increased preference for premium brands.”

Design excellence is another key factor in the expansion strategy. Handsome has leveraged its consistent participation in Paris Fashion Week since 2019 to open a flagship store for its System brand in Paris last June. The 470-square-meter store exceeded its annual sales target by 30% and increased its wholesale contracts by over 20%.

Emerging designer brand Matin Kim opened its first Hong Kong store in October and is planning to establish 27 global stores across Asia within five years. The brand’s Seoul location in Seongsu-dong attracts an 80% foreign customer base, and the company is known for its innovative designs.

This international push comes as domestic fashion spending hits historic lows, accounting for just 3.9% of household expenditure in the third quarter of 2024, according to the Korean Statistical Information Service. Unusual weather patterns have further impacted sales of high-margin winter items like padded jackets and coats during the crucial fourth quarter.

“Unlike cosmetics, fashion relies heavily on brand loyalty,” an industry representative noted. “Rather than pursuing quick sales gains, brands are focusing on building a dedicated customer base that appreciates their design aesthetic and brand image for long-term success.”

Ashley Song (ashley@koreabizwire.com)

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