Global fashion brands are opening cafes in the South Korean market one after another. This is an intention to expand consumer experiences by adding food offerings to clothing in a complex cultural space. They have ventured into Myeongdong, where mass preferences dominate, following the fashion hubs of Sinsa-dong Garosu-gil and Hannam-dong.
According to the fashion industry on the 23rd, Spanish fashion brand Zara will unveil its own cafe brand 'Zacaffe' at its Myeongdong store in May.
Zacaffe first opened its doors in Madrid, Spain, last November. It sells coffee, desserts, and merchandise such as tumblers, hats, eco-bags, and t-shirts in a space connected to the Zara store.
A Zara representative noted, "Myeongdong is a shopping and fashion hub representing Seoul, with a high ratio of both domestic and foreign visitors, which is why there is a Zara store representing South Korea," and added, "It is expected to serve as a space providing various experiences around the brand for consumers.”
◇ Myeongdong, Garosu-gil, Hannam-dong... an era of fashion brand cafes
The American brand Ralph Lauren also opened its own brand cafe 'Ralph's Coffee' in Sinsa-dong Garosu-gil, Gangnam District, Seoul, last September. This came more than a decade after launching its first store in New York City in 2014. Since its arrival in Korea, Ralph's Coffee has gained immense popularity, with long lines even on weekdays. Following this positive response, a pop-up store was opened at the 'pop-up holy ground' of Yeouido The Hyundai Seoul since the 10th of last month.
Ralph's Coffee introduces itself as a place that awakens 'the unchanging American spirit of the Ralph Lauren brand.' The store emphasizes unity with the Ralph Lauren store, decorated in green, white, and natural wood textures. The English menu creates the feeling of being in an American setting. Like other brands, this place also sells products with distinct branding colors such as hats, tumblers, t-shirts, umbrellas, and tableware.
Samsung C&T's imported brand Maison Kitsuné introduced 'Cafe Kitsuné' at its Garosu-gil store in 2018. Currently, Cafe Kitsuné has expanded its locations to Hyundai Department Store Mokdong and Pangyo stores, as well as Shinsegae Department Store Centum City. According to a representative, the Centum City location is so popular that more than 400 teams visit on average over the weekend.
Japanese homewear brand Gelato Pique has also been operating 'Pique Café' on the first floor of its Hannam-dong store in Yongsan District, Seoul, since last September.
◇ Brand DNA captured in a cup of coffee... cafes expanding their identity
Cafes from each brand adopt distinct strategies. Ralph’s Coffee promotes 'American classic' with an interior and menu that emphasizes American sentiment. Maison Kitsuné recreates the elegant cafe atmosphere of Paris, France. Pique Café emphasizes coziness with pastel-colored decor and wooden furniture.
The main reason fashion brands open cafes is to attempt to expand experiences that perfectly match their brand.
Fashion brand cafes trace their origins back to a culture of exclusive boutiques, akin to salons or cafes. This strategic choice aims to strengthen relationships with loyal consumers more closely. It especially creates a sense of connection for millennials and Generation Z who are accustomed to online shopping.
According to Forbes, consumers spend more time in these cafes, forming emotional bonds with the brands. Kate Spade CEO Lanza Jensen said, "Cafes aren't just spaces for food and drink; they're spaces to experience the brand's worldview," and noted that she felt a strong emotional connection with brand fans through pop-up cafes.
The actual profit that fashion brands gain from operating cafes is minimal. According to the Financial Times, it remains at about 1-3% compared to main business sales. Operating a cafe is not merely a means of generating income. The revenue significantly enhances brand loyalty.
Experts note that "running a brand cafe increases the average store stay time by 1.5 times and can raise loyalty by up to 37%."
◇ Growing fatigue from the ever-increasing cafes... "Differentiation is key"
Cafes are platforms that can showcase both elegance and accessibility simultaneously. They particularly attract attention on visual social media such as Instagram. The experience-focused MZ Generation (millennials and Generation Z, born 1980-2004) generally responds positively to brand cafes.
However, some have raised questions about satisfaction relative to prices and brand identity.
On consumer community platforms and social media, criticism often arises that there is a lack of differentiated experiences compared to their high prices. According to consumer reviews on KakaoMap, the average ratings for Ralph’s Coffee and Cafe Kitsuné (Garosu-gil) were 3.0 and 3.9, respectively, out of 5 points. Regular specialty coffee shops generally exceed 4 points.
In reviews, one consumer noted about brand cafes, "Initially, I was drawn by the novelty to visit, but ultimately, it felt like drinking ordinary coffee with an expensive price tag only because it had the brand logo. It’s good for taking certification photos, but I felt it was lacking in taste and satisfaction compared to specialty cafes in terms of price."
Experts say that as brand cafes multiply, they must increasingly refine concepts such as menu and interior to align with segmented consumer preferences. This means projecting new aspects of the brand that consumers may not have recognized, rather than relying solely on familiar brand images.
A representative from the Korean Barista Association stated, "The success of a fashion brand cafe does not solely depend on providing a space that suits the trend, but on how well it expresses the brand's unique values and philosophy," adding, "In the future, brand cafes are likely to evolve into galleries that showcase the heritage of the respective brands."