"Find Hidden Luxury Gems"... Competition to Discover Overseas Brands to Capture MZ Generation

Increase in Sales Just by Importing Overseas Brands Well

[Asia Economy Reporter Lim Hye-sun] "It is difficult to grow without opening the wallets of the MZ generation. If we do not quickly respond by focusing on niche markets, we will be immediately left behind."

The fashion industry is putting all its efforts into discovering 'overseas brands tailored for the MZ generation (Millennials + Generation Z).' Overseas brand sales have been the only segment to grow in the fashion market for the past 1 year and 10 months since the COVID-19 pandemic. This is because they have gained support from consumers in their teens to early 30s, who have recently emerged as the main consumer base. Companies are making every effort to secure well-known overseas brands.

Discovering Exclusive Brands Targeting the MZ Generation

According to the fashion industry on the 19th, luxury online platform Catch Fashion signed an official contract with the global eco-friendly brand Pangaia and launched it exclusively in Korea. This is the first time a luxury online platform has signed an exclusive contract with an overseas brand. Pangaia is an eco-friendly lifestyle wear brand headquartered in London and New York, pursuing sustainable fashion by valuing responsible production and solving issues related to excessive consumption. Scientists, artists, engineers, and designers from around the world collaborate to develop eco-friendly materials with a creative and scientific approach. Prices range from 200,000 to 500,000 KRW.

Hyundai Department Store Group’s fashion affiliate Hansome has, for the first time, hired an external figure, Park Cheol-gyu, former head of Samsung C&T Fashion Division, as president of its overseas fashion division and upgraded the division to a full department. During his tenure at Samsung C&T Fashion Division, Park played a key role in importing overseas brands such as Thom Browne, Comme des Gar?ons, Ami, Lemaire, and Maison Kitsun?. Hansome is traditionally strong in domestic brands like Time, Mine, and System. However, it is relatively weaker in the overseas fashion sector compared to Shinsegae International and Samsung C&T Fashion Division. The sales ratio between domestic and overseas businesses is about 7 to 3. Hansome reorganized related teams such as product planning and design through organizational restructuring.

Shinsegae’s Dominance and Samsung C&T Fashion Division’s Pursuit

The leader in overseas brand business is Shinsegae International. Since importing the Italian luxury brand Armani in 1992 and the American luxury women’s wear brand Senza in 1998, it has become the fashion company receiving the most business proposals from European and American luxury companies. Shinsegae International expanded its overseas fashion business by proposing exclusive licensing contracts first for brands that performed well domestically among those imported through Korea’s first luxury select shop, Boon the Shop. Shinsegae International holds domestic licensing rights for about 40 overseas fashion brands, including Celine, Marni, Maison Margiela, and Acne Studios. This year, it acquired the business rights for Jil Sander and Rick Owens.

Samsung C&T Fashion Division is chasing Shinsegae International with sales growth of over 100% for brands like Thom Browne, Ami, Maison Kitsun?, and Lemaire. Thanks to the strong performance of overseas brands, Samsung C&T Fashion Division escaped the red in the third quarter this year. For the past 10 years, Samsung C&T Fashion Division has nurtured lesser-known overseas brands through select shops like 10 Corso Como and Beaker. Brands that received good responses expanded their business into standalone stores. Continuous investment has become the company’s strong competitive edge. The company plans to continue experimenting with brands through select shops.

"Preference for Luxury Brands Unknown to Others but Known to Me"

The reason overseas brands have secured a firm foothold in companies’ core markets is that the MZ generation is paying attention to them. For the MZ generation, fashion expresses their taste and preferences. They actively seek and purchase brands unknown to others not only through imported brands but also via overseas direct purchases. A case in point is the American brand Fear of God, which is not directly imported to Korea but is wildly popular among men in their 20s. The Fear of God Essentials line, known for its cost-effectiveness, is so popular that it is hard to obtain. A fashion industry insider explained, "People in their 20s and 30s have almost no sense of alienation toward brands not available in Korea due to their experience with overseas direct purchases and studying abroad," adding, "Nowadays, there is even a saying that just bringing in overseas brands well guarantees moderate success."

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