China is Now 'MLB Fever'... Surpasses National Bag MCM

Hat Worn on Korean Variety Show Draws Attention
40% Discount When Purchased at Duty-Free Shops
Average Sales Doubled Compared to Last Year

On the afternoon of the 9th, people are purchasing products at the MLB store located in a duty-free shop in Seoul.

[Asia Economy Reporter Lim Hye-seon] On the afternoon of the 9th, at Duty-Free Shop A in Jung-gu, Seoul, there is a bustling store in contrast to the quiet atmosphere caused by COVID-19. It is MLB, a fashion brand under F&F. MLB store employees are busy attending to _ttaigong_ (Chinese smugglers) who want to purchase hats, clothing, and shoes. Some _ttaigong_ buy products worth up to tens of millions of won. An employee at other brand stores inside the duty-free shop said, "Due to the impact of COVID-19, it is common not to make even 1 million won in daily sales, but MLB stores are always crowded with customers."

MLB Surpasses MCM

At Duty-Free Shop A, MLB's average monthly sales amount to about 7 billion won, more than doubling compared to last year. Among domestic brands, its sales ranking rose from 12th last year to 5th this year. It even surpassed MCM (6th), which had gained popularity as the "national bag" among Chinese consumers. At nearby Duty-Free Shop B, MLB has never lost the top sales spot in the fashion brand category this year.

A duty-free shop official explained, "While Korean cosmetics have consistently remained popular among Chinese consumers, Korean fashion brands did not receive much attention except for MCM in the mid-to-late 2010s, which sold like hotcakes as the 'wannabe bag' for Chinese consumers," adding, "The popularity of MLB is also bringing spillover benefits to other fashion brands."

The reason _ttaigong_ are scooping up MLB products at duty-free shops is that the sales speed of MLB products in China is accelerating. After signing the MLB China licensing rights in 2019, F&F established a Shanghai corporation. In 2019, MLB ranked 13th in the sports casual clothing category on Tmall, an online shopping platform operated by Alibaba Group in China, based on total payment amount. Confirming MLB's growth potential in the Chinese market, F&F formed a strategic partnership with Alibaba Group and targeted the Chinese market through meticulous digital data analysis from customer targeting to product development.

F&F's China Sales Increase Sixfold

F&F's sales in China increased sixfold from 11.9 billion won in 2019 to 74.5 billion won last year. Average daily sales on Tmall also rose from 30 million won to 80 million won. This year, growth is even steeper. Sales from January to March alone reached 49.5 billion won, a 690% surge compared to the same period last year. F&F plans to increase the number of local stores in China to 270 by the end of this year. Currently, there are about 190 stores.

The price competitiveness of duty-free shops also played a role. MLB products are priced about 20% higher in China than in the Korean market. Purchasing at duty-free shops allows customers to buy at prices up to 40% cheaper than local Chinese prices.

In the securities industry, F&F's China sales are expected to reach around 500 billion won next year, driven by MLB's growth. This is an encouraging figure compared to Amorepacific, which entered the Chinese market in 2002 with the 'Laneige' brand and recorded sales of 467 billion won in 2014, and LG Household & Health Care, which entered the local market in 2006 with 'Whoo' and achieved sales of 546 billion won in 2018, both taking 12 years to reach those levels.

A fashion industry insider analyzed, "Chinese consumers began to pay attention to MLB after seeing celebrities wearing hats on the Korean variety show Running Man, which they like. MLB is increasing the proportion of products targeting Chinese consumers from the design planning stage to production, so the brand's growth trend is expected to continue."

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