Domestic fashion companies are also accelerating their entry into overseas markets this year. This decision is based on the judgment that, due to the domestic recession, there is no other way to survive but overseas.
According to the distribution industry on the 12th, LF and Samsung C&T are expanding their markets in China and Vietnam while promoting a premium strategy. Recently, LF has set prices and materials for Haesje's products sold in China to be on par with those in South Korea. Even if it feels somewhat expensive, this is calculated to firmly establish itself as a luxury brand.
The brand Junji of Samsung C&T's fashion division also opened a standalone store in the luxury department store Lil' in Shanghai, China, last August. LF's men's clothing brand Maestro is also establishing itself as a premium brand in Vietnam, recently entering the upscale Trang Tien department store in Hanoi that is favored by the upper class.
The European market, often referred to as the home of fashion, is also a target. Hanssem has been steadily participating in the Paris Fashion Week, known as the harsh evaluation ground of the fashion industry, since 2019, laying the groundwork. In June of last year, it opened a flagship store for its brand system in Paris. Thanks to this, it achieved 130% of its annual sales target last year, and the number of wholesale contracts increased by over 20% compared to the previous year.
The overseas market strategy of fashion companies is necessary because they can no longer expect growth by only looking at the domestic market. According to the Korean Statistical Information Service (KOSIS), last year's third-quarter average monthly consumption expenditure per household for clothing and footwear was 114,000 won, representing a record low of 3.9% of total consumption. Abnormal weather is also an issue. With a cold wave expected to arrive later than anticipated this winter, clothing sales in the fourth quarter of last year plummeted.
A fashion company official noted, "Since cosmetics and food products are all achieving results overseas rather than domestically, we cannot help but turn our eyes to the overseas market. However, fashion cannot compete on price with Chinese or Vietnamese brands, nor can it stand shoulder to shoulder with European luxury brands, so we are approaching the overseas market with a long-term perspective."