New Balance eyes 1 trillion won sales milestone in Korea

(MK database)

New Balance, managed by E-Land World in South Korea since securing exclusive distribution rights in 2008, is on track to surpass 1 trillion won ($713 million) in annual sales in 2024.

Following a robust 2023 that saw sales hit 900 billion won, the global sports brand is moving aggressively to break through the one-trillion-won barrier, despite challenging economic conditions.

Currently, Nike and The North Face are the only fashion brands in Korea with annual revenues above this mark.

E-Land World announced on Monday that New Balance recently added aespa’s Winter and actor Gong Yoo as brand ambassadors, who will join the brand’s existing ambassadors, singer IU and former figure skating champion Kim Yuna.

With four high-profile figures representing the brand, this move is seen as an unusual yet strategic investment, aiming to appeal across genders and generations. By selecting Winter, popular among younger consumers, and Gong Yoo, favored by those in their 30s and 40s, New Balance is casting a wide net in Korea’s diverse market.

In another major step, New Balance opened a 754-square-meter flagship store in Seongsu-dong, eastern Seoul, in October 2024. Known as a trendy shopping destination among young Koreans, Seongsu now hosts the brand’s largest selection of premium MADE products and exclusive items, drawing over 2,000 visitors on its first day and attracting 30,000 visitors within the first two weeks.

The store’s launch was met with high demand for rare items like the 993 sneakers, leading eager customers to line up before opening hours, according to a New Balance spokesperson.

To further boost sales, New Balance is launching seasonal campaigns and special promotions.

The 2024 Members Winter campaign, running on its official website through November 17th, offers discounts on popular down jackets, while New Balance Mega Week, a joint event with Musinsa running through November 18th, provides deals on winter apparel and accessories.

The brand also plans to roll out exclusive and hard-to-find products periodically, creating a sense of anticipation among its customers.

This intensified marketing effort follows the appointment of Cho Dong-ju as CEO of E-Land World on September 30th.

Credited with driving New Balance’s growth in Korea, Cho has held key positions within the company, including head of New Balance’s brand division in 2017, director of the sports business unit in 2020, and COO of E-Land World in 2023. Cho is also recognized for his role in successful New Balance collaborations with local artists and brands.

Under Cho’s leadership, E-Land World has implemented a one-team structure, uniting product planning, marketing, and sales teams into a single, collaborative project-based format. This shift departs from the traditional division of labor and aligns all functions towards the shared goal of reaching the 1 trillion won milestone.

Industry insiders suggest that New Balance’s push for record sales may be partly driven by the upcoming renegotiation of its licensing agreement with New Balance’s U.S. headquarters, set for the end of 2025.