'It's unlikely that domestic growth will rebound': K-fashion brands increasingly fleeing overseas

Korean fashion brands face domestic downturn and are expanding internationally, with companies like Samsung C&T and LF targeting markets in the Philippines and India.

Samsung C&T's fashion brand 8seconds operates a Pokémon-themed store in Seongsu-dong, eastern Seoul, in April. [SAMSUNG C&T]

As rising Korean labels like Matin Kim and Mardi Mercredi captivate the younger generation and fuel the latest Korean fashion boom, more established domestic brands are increasingly looking abroad for growth.

Weighed down by a prolonged domestic downturn, mid-tier fashion companies are accelerating global expansion efforts to stay afloat.

Legacy labels turn global

Samsung C&T’s fashion division plans to relaunch its casual brand 8seconds overseas this year, nearly a decade after its initial attempt.

The brand opened a flagship store in Shanghai, China, in 2016 but withdrew two years later due to geopolitical tensions related to the U.S.-led antimissile Terminal High Altitude Area Defense system and the ensuing backlash against Korean culture.

This year, 8seconds will reenter the global market, targeting the Philippines. Samsung C&T said it plans to open three stores starting with a flagship in Manila’s massive SM Mall of Asia.

“We designed 8seconds from the beginning with global markets in mind,” a company spokesperson said. “After weighing options in Southeast Asia as our top priority, we partnered with a Philippine retail company to launch the brand there.”

LF, the parent company of Hazzys, is also preparing to open its first store in India later this year. It will mark the first time a homegrown Korean brand opens a stand-alone store in the country.

To pave the way, LF signed a strategic export deal in March with Asian Brands Corporation, which has worked with Nike and Lacoste. The store will carry the full Hazzys lineup: menswear, womenswear, golf apparel and accessories.

“India’s premium fashion market already includes global brands like Polo Ralph Lauren and Lacoste,” an LF spokesperson said. “Classic style has strong demand among the middle class. We aim to operate around 10 stores within three years.”

Summer collection lookbook for Olivia Lauren, the womenswear brand by Sejung Group affiliate OVLR [SEJUNG GROUP]

Meanwhile, Sejung Group is also planning a return to international markets. About a decade ago, Sejung launched its menswear brand, Indian, and womenswear brand, Olivia Lauren, in China but later pulled out.

This time, the company is considering a wider range of destinations.

Park Yi-ra, daughter of company CEO Park Soon-ho and now president, told reporters in October of last year, “It’s difficult to enter markets alone so we're looking to build partnerships with strong local networks.”

Domestic slump spurs overseas push

This new urgency to expand overseas comes as the domestic market falters. With consumer sentiment low and foot traffic declining at retail channels like department stores, fashion companies have posted disappointing first quarter results across the board.

Samsung C&T’s fashion division recorded 34 billion won ($24.4 million) in operating profit, down 38 percent from a year earlier. Handsome saw a 32.9 percent drop in operating profit, while Shinsegae International reported a 48.3 percent decline. Kolon Industries FnC swung to a loss with a 700 million won deficit.

Promotional image for a collaborative collection released on May 12 by SIEG, ShinWon’s menswear brand, in partnership with essential;, the music curation brand by NHN Bugs. [SHINWON]

Rebranding for younger shoppers

Many midsize brands are also trying to shed their “old-fashioned” image, long associated with older adults.

Inspired by the popularity of younger labels among the millennial and Gen Z generations, companies are trying to reposition themselves to appeal to a broader demographic.

ShinWon is one example. With legacy labels like SIEG, Besti Belli and See, the company is introducing more casual lines and collaborating with NHN Bugs' music curation brand, essential;, to build a trendier identity.

“It's unlikely that domestic growth will rebound anytime soon,” said one industry insider. “This is the right time to leverage the expertise in brand operations that we've built over the years and focus on expanding our international sales.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff. BY KIM KYUNG-MI [kim.juyeon2@joongang.co.kr]