Korean department stores present local fashion labels to allure young consumers

“Knotted World” in Lotte World Tower Mall in Jamsil, southern Seoul [Photos provided by GFFG and MK DB]

South Korean department stores are shifting focus to local fashion brands from luxury brands to seek a breakthrough as sales of luxury brands have slowed this year.

According to multiple sources from the retail industry on Thursday, Lotte Department Store Co. has recently opened a series of Korean fashion brand stores. The retailer introduced an experimental concept at its store in Lotte World Tower Mall in Jamsil, southern Seoul, by offering consumers a hands-on experience of Korean fashion.

For example, it presented a unique vibe for the flagship store of the brand Ader Error that will open on Friday. The 230-square-meter store area features uniquely designed mannequins and all-around speakers, which offers a synesthetic experience to consumers.

Earlier in March, Lotte Department Store also opened a super-large culture complex, “Knotted World.” The complex has a long waiting line of at least one hour.

The retailer has been working with HAGO L&F Inc., the operator of online fashion platform HAGO, to promote Korean fashion brands since 2017.

The efforts have led to an increase in foreign sales.

Purchases by foreign consumers at Lotte Department Store in Jamsil increased by 50 percent in the first four months of this year compared with pre-pandemic levels.

The department store chain plans to significantly expand Korean fashion by opening stores of leading brands such as Mardi Mercredi this month.

“Lotte Department Store is making bold moves to break away from its conservative image,” said an official from the retail industry.

“We have been witnessing an increase in sales by expanding Korean fashion brands to include small and medium-sized ones.”

“K-Fashion 82” [Photo provided by Shinsegae Department Store]

Shinsegae Department Store is also expanding its customer base by launching a Korean fashion export platform named “K-Fashion 82” on Wednesday.

It plans to increase Korean fashion brand awareness to boost foreign shopping demand. It re-opened a “New Contemporary” specialty store on the fifth floor of its Gangnam branch after renovation in August last year and showcased up-and-coming domestic designer brands that had been accessible only via online.

The strategy is paying off as sales jumped over 30 percent. Shinsegae Department Store will continue its strategy to target young consumers by opening another New Contemporary store at the Centum City branch in Busan in August.

It intends to keep up with the rapidly changing fashion trend by replacing 60 percent of the existing young casual brands with emerging brands. The Centum City branch launched as many as 13 brands that had not set foot in department stores.

Hyundai Department Store, meanwhile, has been aggressive in opening pop-up stores of emerging brands, mainly at The Hyundai Seoul located in Yeouido, central Seoul.

The Hyundai Seoul has introduced about 200 new brands in the past two years since its launch. The branch, upon opening, drew attention with its pioneering moves to feature popular brands, such as Cure and thisisneverthat.

The retailer plans to step up its effort to showcase Korean fashion brands. It plans to present a large number of new brands in its Mokdong store in western Seoul to boost sales.

In March, the Mokdong store went through a year-long renewal of its annex building and introduced a specialty store concept specific to each floor to target young consumers.