SEOUL (ANN/KOREA HERALD) – Korean fashion brands are setting their sights on the global market in 2025 as they face challenges from domestic economic stagnation, high inflation, and climate-related shifts.
Handsome Corp., a key player under the Hyundai Department Store Group, is targeting the French market with its premium brands, System and Time, by expanding distribution channels.
System is expected to open a permanent store in one of Paris’s major department stores after running a temporary store at Galeries Lafayette Haussmann since July 2024. Industry insiders suggest this extended presence is often a strategic step to secure a long-term spot.
Time is also planning to establish a flagship store and department store presence in Paris, building on the strong interest it garnered from buyers at Paris Fashion Week 2024.
“With high brand loyalty for Handsome’s private labels, we see ample opportunities for global expansion. Starting in Paris, we aim to gradually expand and create synergies with our domestic business,” said a Handsome Corp. official.
This strategy comes as Handsome Corp.’s operating profit dropped by 28.3 per cent in 2024, totaling KRW72.1 billion (USD48.88 million), a significant decline from the consistent KRW100 billion profit seen since 2019. The slowdown in domestic sales, exacerbated by record hot weather impacting fall and winter apparel, has made international growth a key focus.
LF Corp. is leveraging premiumisation to compete in Asia, especially against lower-cost products from China and Vietnam.
Hazzys, LF Corp.’s casual brand, markets itself as a premium label by maintaining pricing, design, and material quality consistent with its Korean offerings.
In 2024, Hazzys saw a 15 per cent increase in sales across China, Taiwan, and Vietnam, with China alone contributing a 30 per cent sales growth.
Samsung C&T’s premium brand Juun.J is also expanding its footprint in international luxury markets:
It opened a store in Shanghai’s Reel Department Store in August 2024. It also launched pop-up stores in the UK and Italy to strengthen its premium brand identity.
Demand for premium Korean brands
Despite challenges in some regions, Korean premium fashion is thriving in markets like Vietnam, where rising income levels are fueling demand for high-end products.
“Even with struggles in China, demand for premium Korean brands persists. In Vietnam, the preference for premium products is growing alongside increasing incomes,” noted an industry insider. “Korean fashion brands are focusing on building long-term customer loyalty through brand identity and design, rather than chasing short-term sales.”
As Korean fashion brands navigate domestic hurdles, their strategic global expansions signal a commitment to securing a prominent place in the international market.
