Kolon Industries is accelerating efforts to improve the fundamentals of its fashion institutional sector, Kolon FnC. As weak results persist, the company has carried out restructuring, including voluntary retirement and organizational reshuffling, while seeking new growth engines by focusing on global operations in China and Japan and on functional markets such as outdoor and golf.
According to the industry on the 10th, Kolon FnC's revenue last year was 1.1647 trillion won, down 3.9% from the previous year (1.2119 trillion won). Operating profit during the same period fell 81.7% from 16.3 billion won to 3 billion won. By quarter, it posted operating losses in the first quarter (700 million won) and third quarter (16.5 billion won) last year, but avoided an annual deficit.
As the fashion market slumped, sales fell and profitability deteriorated, prompting the company to ramp up restructuring starting last year. In September, it implemented a voluntary retirement program for all business unit employees (10 or more years of service, age 40 or older) and overhauled the organizational structure.
Previously, brand-based teams handled everything from product planning and sales to sourcing (procurement), but recently sales and sourcing functions were consolidated into separate, centralized units. Brand managers (BMs) were refocused to concentrate on branding, including brand strategy, design, and product planning. The aim is to raise operational efficiency across the organization.
Brands with weakened competitiveness were wound down. Following the men's fashion brand Amoprè, the company halted the lifestyle brand Epigram. Earlier in 2024, it ended operations of some women's and men's apparel and sneaker brands, including Lucky Marché, the second line of Lucky Chouette, as well as Undyed Room, Freaker, and Rementary.
Going forward, Kolon FnC plans to seek a rebound by centering on global operations in China and Japan and the premium outdoor market. In particular, the outdoor brand Kolon Sports is concentrating on strengthening its product lineup and competitiveness to expand its foothold in the Chinese market and the rapidly growing trail running market.
Last year, the revenue of Kolon Sports China, a Chinese joint venture between Kolon FnC and Anta Sports, rose about 82% from a year earlier. Retail-based sales (at consumer prices) were reportedly about 400 billion won in 2023, 750 billion won in 2024, and approached 1 trillion won last year.
Since 2024, Kolon Sports has steadily launched trail running–only products and has sponsored official races. In line with the discipline's characteristics of running on mountain trails or unpaved roads, it has focused R&D on functional items such as lightweight waterproof, windproof, and quick-drying products.
In addition, in collaboration with the outdoor brand Helinox—dubbed the "Hermès of camping" among camping enthusiasts—the company aims to expand the presence of Helinox Wear, the apparel brand launched last year. After selling through its own mall and pop-up stores last year, it plans to open a flagship store in the first half of this year and enter major department stores.
In golf apparel, the company plans to steadily expand its East Asian operations in Japan and China around G/FORE, a brand brought in from the United States. Last year, G/FORE opened five stores in Japan and China, and new stores are in the works this year. Kolon FnC signed exclusive master license agreements for G/FORE in China and Japan in 2024.