Hansome's All-Out Online Battle... Introduction of AI Recommendation Feature and Launch of PB Brand

H Fashion Mall Renovation... Developing into an Imported Fashion Specialty Mall
EQL Focuses on Brand Lineup and Launches Own Brand
TheHansome.com Enhances Convenience and Gains Popularity with At-Home Service

Hansome online shopping mall screen.

[Asia Economy Reporter Lee Seon-ae] Handsome has selected strengthening its online business as its top management priority and is concentrating company-wide capabilities on this effort. While competitors are consolidating their scattered online businesses, Handsome is enhancing the characteristics of its three operating online malls and engaging in individual battles.

According to Hyundai Department Store Group on the 30th, Handsome is promoting the renewal of the H Fashion Mall. The renovation is scheduled to be completed in August. Through this renewal, Handsome plans to grow H Fashion Mall, a casual and imported brand specialty mall, into a specialty mall for imported fashion. A Handsome official explained, "We will improve the site UI/UX (user interface/user experience) and operational systems, and further strengthen brand content (brand news, brand video content, etc.). Additionally, we will introduce personalized recommendation functions through artificial intelligence (AI) and improve membership levels and benefits."

For EQL, an online select shop launched at the end of last month, the focus is on the brand lineup. Unlike the existing The Handsome.com and H Fashion Mall, EQL features a total of about 130 apparel, accessories, beauty, and lifestyle brands, including Handsome’s self-developed private brand targeting the millennial generation. It is characterized by diversifying online revenue sources by earning commission fees through external consignment brand entries. Within this year, additional exclusive brands will be secured, and next year, private brands (PB) will be launched. Recently, EQL also introduced the online-exclusive casual private brand 'Rareview.' This is to strengthen EQL’s competitiveness through the development of unique and differentiated content. Rareview consists of a 'Basic Line' featuring solid colors and simple logo-centered designs, and a 'Monthly Planning Line' proposing new trends every month. A total of 23 models, including T-shirts, shirts, and pants, were released for this summer season. To differentiate products and content, 'pinpoint marketing' and 'monthly theme marketing' will also be implemented, and in the future, experiential stores linked with Handsome’s offline stores such as The Handsome House will be operated to allow customers to directly experience EQL products.

Hansome online shopping mall screen.

Previously, Handsome significantly enhanced the convenience of The Handsome.com. This includes the Handsome Delivery Service, which guarantees same-day shipping after ordering, and the industry’s first home fitting service 'At Home.' At Home allows customers to select up to three items to try on before purchase and decide within 48 hours whether to buy them. In the first quarter of this year, the number of At Home users increased by 45% compared to the same period last year, playing a significant role as a catalyst for online traffic.

Handsome’s online channel sales have continuously increased since 2015, recording sales of 150 billion KRW last year (100 billion KRW from The Handsome.com and 50 billion KRW from H Fashion Mall), accounting for 11.3% of total sales. Due to social distancing and increased non-face-to-face (untact) consumption caused by COVID-19, demand for online channels expanded, and the online sales ratio in the first quarter is estimated to have increased to 15%. Online sales this year are expected to exceed 200 billion KRW. Choi Jae-ho, a researcher at DS Investment & Securities, predicted, "With the strengthening of online channels, online sales are expected to continue to increase, and the proportion of online sales will expand to 30% in the future."

A fashion industry insider analyzed, "Unlike existing fashion companies that have competed on price competitiveness in the online market, Handsome is competing with brand image and quality, effectively targeting the online market without damaging brand value," adding, "They will continue differentiated moves by strengthening business strategies tailored to the characteristics of the three online malls."

This content was produced with the assistance of AI translation services.