-By Ankita Dutta.
South Korea-based department stores are adjusting their strategies to align with contemporary market demands by transitioning their attention from high-end brands to domestic fashion brands. The move comes in response to slowing sales of luxury brands this year. Lotte Department Store, for instance, has opened a series of Korean fashion stores as part of its experimental concept, offering consumers an immersive experience of Korean fashion. The flagship store of Ader Error, for example, boasts a unique vibe, featuring uniquely designed mannequins and “all-around speakers,” which gives consumers a synesthetic experience.
Since 2017, Lotte Department Store has been collaborating with online fashion platform HAGO L&F Inc. to promote Korean fashion brands, a collaboration which has resulted in a 50% increase in foreign sales during the first quarter of this year. Lotte plans to further expand Korean fashion by introducing more leading brands such as Mardi Mercredi later this month.
Similarly, Shinsegae Department Store seeks to expand its customer base by launching “K-Fashion 82,” a Korean fashion export platform aimed at boosting foreign shopping demand.
The store has reopened a specialty store named “New Contemporary” on the fifth floor of its Gangnam branch and continues to showcase up-and-coming local designer brands that were only accessible online. Shinsegae intends to maintain its strategy to appeal to young customers by substituting 60% of its young casual brands with emerging ones.
Hyundai Department Store has responded aggressively to market trends by opening pop-up stores for emerging brands, mainly at The Hyundai Seoul located in Yeouido, central Seoul. The store introduced about 200 new brands in the past two years, drawing attention with its pioneering moves to feature popular brands like Cure and thisisneverthat. In March of this year, the store introduced a specialty store concept specific to each floor, which boosted sales.
Towards the end of the year, Hyundai will present a large number of new brands in its Mokdong store in western Seoul to target young customers. Lastly, all three department stores are making bold moves to break away from their conservative images, with both Shinsegae and Lotte dramatically expanding their focus on Korean fashion brands. These department stores are rethinking their strategy and prioritizing inventory that aligns with the public’s ever-changing fashion tastes.
