Handsome, a fashion company affiliated with Hyundai Department Store Group, said on Oct. 20 that its annual online institutional sector transaction amount is expected to surpass 400 billion won for the first time this year. Compared with the 250 billion won level in 2020, it has increased by more than 60% in five years. This year marks the 10th anniversary of Handsome's online business.
The reasons the online business was able to keep growing, analysts noted, include "bold investment" such as building an online-only automated logistics center, a "specialty mall strategy" segmented by target customer, and the early success of the new online select shop "EQL" aimed at customers in their 20s and 30s.
In particular, the automated logistics center "Smart Hub e-Biz," unveiled in 2022 with a 50 billion won investment, laid the groundwork for growth. Smart Hub e-Biz's annual processing volume is 11 million transactions, more than three times that of the previous logistics center, and it can store up to 920,000 garments. The time from customer order to product shipment has been cut to nearly half of the previous level, and mis-shipment cases have fallen by more than 80%.
According to the company, since Smart Hub e-Biz began operating, the purchase conversion rate and repurchase rate have each risen by more than 20% and 30%, respectively.
A "specialty mall strategy" tailored to target customers also drove growth in Handsome's online institutional sector. Starting with "The Handsome.com," a specialty mall for its own brands such as Time and Mine, Handsome operates three specialty malls: "H Fashion," a specialty mall for overseas fashion, and "EQL," a mobile select shop aimed at customers in their 20s and 30s.
For EQL, its fifth year since launch, the transaction amount is expected to top 100 billion won this year. With new customers in their 20s and 30s joining, it is seen as laying the foundation for Handsome's continued growth. About 80% of EQL's purchasing customers are in their 30s or younger, and the average age of purchasing customers is 32. Handsome opened EQL offline stores at The Hyundai Seoul and in Seongsu-dong, and recently opened a new store at Hyundai Department Store's Chungcheong branch. It is considering adding more stores at major department store locations within the year.
Handsome plans to upgrade competitiveness in the online institutional sector by further advancing logistics services and strengthening the specialty mall strategy. It is also reviewing service upgrades through the introduction of an advanced logistics system that incorporates the latest technologies such as artificial intelligence (AI), as well as online channel renewals and operational overhauls.
To mark the 10th anniversary of its online business, Handsome is operating "The Coat Club" pop-up store (temporary store) at the EQL GROVE in Seongsu-dong through Oct. 23. Yeo Yu-jeong, executive director in charge of Handsome's online business, said, "Based on our own content and the know-how of a fashion specialist with more than 40 years of experience, we plan to strengthen our competitiveness by introducing differentiated services that link online and offline."