Korea emerges as test market for overseas fashion brands

[Courtesy of Alo Yoga]

Overseas fashion brands are entering the South Korean market, which has become an important test market for success.

According to sources from the fashion industry on Thursday, many foreign fashion brands, including Alo Yoga, On, Brandy Melville, Human Made, and Harley-Davidson Collections, will officially begin sales in Korea starting in September.

Alo Yoga, an American athleisure brand favored by Hollywood celebrities, recently established Alo Yoga Korea and decided to open its first flagship store on Dosan-daero in southern Seoul. The store is expected to open by the end of the year.

Founded in California in 2007, Alo Yoga has become a leading brand that threatens Canada‘s yoga wear giant Lululemon, with its eco-friendly materials and luxurious, diverse designs loved by Hollywood celebrities.

Earlier in 2024, the brand appointed K-pop sensation BLACKPINK’s Jisoo as its model, making it a must-buy brand for Korean women traveling to the United States.

Brandy Melville, a fast fashion brand extremely popular among American teenage girls, will also open its first store in Seongsu-dong, the trend-leading neighborhood in Seoul, in September.

This brand, which opened its first store in Los Angeles in 2009, is famous for its one size policy that only releases small-size clothes, making it known as a brand that certifies a slim body among teenage girls.

Swiss sports brand On, which is making waves in the global sports market, plans to open a direct store in Korea early next year.

On, founded in 2010, is particularly popular for its running shoes. It has been growing rapidly enough to threaten Nike and Adidas in the U.S. and Europe, and is also highly popular among trendy young people and running enthusiasts in Korea.

Japanese street casual brand Human Made also plans to open an official flagship store in Seongsu-dong in September.

Established by Japanese fashion designer Nigo in 2010, Human Made is considered a must-buy fashion brand among street fashion enthusiasts when traveling to Japan.

Most of these brands are conservative in opening stores as they pursue a policy of scarcity, which makes them a hot topic among fans whenever they open a new store.

Industry insiders note that the reason the brands are choosing Korea is that Korea has emerged as a strategic stronghold in the Asian market.

They expect the high buzz of Hallyu, or Korean Wave, the strong purchasing power of young Korean people, and the tremendous power of social media to drive their global marketing.

French brands Ami and Maison Kitsuné, which gained attention in the global fashion market after becoming popular in Korea as a new luxury, have already set good precedents.

“Young people in Japan and China are greatly influenced by their Korean counterparts‘ fashion,” said an insider. “These overseas brands believe that if they can capture the Korean MZ generation, they will be able to dominate not only the Asian market but also the global market more quickly.”

According to a report published by market research firm Trend Research Inc., the Korean fashion market has been growing steadily since 2000.

The market is projected to grow to 49.6 trillion won ($35.8 billion) this year from 48.4 trillion won in 2023.