First-generation fashion companies "wearing new clothes"... "Got younger by meeting MZ"

First-Generation Fashion Companies Injecting Youthful Energy
Diversifying Target Audiences with MZ Generation-Led Ventures
"Survival Requires Quick Adaptation to Rapid Trend Changes"

LF in-house venture brand Dunst photo shoot. Photo by LF

[Asia Economy Reporter Song Seung-yoon] First-generation fashion companies are becoming younger. This is due to various meaningful attempts such as changes in brand identity and targeting strategies, as well as launching new brands through internal ventures led by the MZ (Millennial + Generation Z) generation.

According to the industry on the 29th, fashion companies classified as first-generation in the domestic fashion industry are implementing various strategies to break away from their old-fashioned image and create growth momentum. As the MZ generation emerges as the main customer base in the fashion industry, they are seeking ways to continue their existing growth trajectory.

LF is a representative example. LF is focusing on developing brands like Daks and Hazzy’s, which have been considered fashion brands for middle-aged and older customers, into 'Ageless' brands that can encompass the MZ generation as well. At the end of last year, Daks also hired Luc Guadagnin, a world-renowned creative director (CD) formerly of Burberry, as the general CD. Recently, LF launched its own private brand (PB) 'Standial' targeting young women through LF Mall. For brands with higher target customer age groups and price ranges, they are implementing customized strategies such as introducing an online-based 'Young Line.'

As part of this, internal ventures are also being activated. In October last year, the second internal venture project launched the Spade Club Seoul brand, strengthening its branding. By enhancing distribution and marketing mainly on platforms used by the MZ generation such as LF Mall, Musinsa, and 29CM, a strong fan base has been growing even among people in their 20s. In fact, the internal venture brand Dunst, first introduced by LF in 2019, has been highly favored by young people for its trendy designs and has grown by more than 100% annually. Dunst succeeded in turning a profit in less than two years and spun off last year as an independent corporation under the subsidiary 'Citydots.'

Sejeong, in-house venture brand WMC 22FW pictorial. Photo by Sejeong

Another first-generation fashion company, Sejung, also launched its first internal venture brand WMC last year. WMC operates independently as a separate internal venture from the existing Wellmade team. With hit items such as the ‘Solid T-shirt,’ WMC’s sales in the third quarter of this year grew 35% compared to the previous year. Sejung expects the overall sales this year to show a growth rate in the 40% range. All WMC employees belong to the MZ generation.

Building on WMC’s success, Sejung also newly launched the women’s clothing brand 'Momen' this year through a separate corporation. Targeting women in their 30s and 40s, it was first introduced in collaboration with Musinsa’s women’s fashion platform 'Lazy Night,' and customer response has been favorable, with the brand quickly ranking high after launch. Since President Park Ira’s appointment, Sejung has focused on injecting a youthful image. Moving away from offline-centered distribution channels represented by street stores, they are developing a different direction from previous strategies, such as online-focused distribution strategies and product designs reflecting trends. A representative example is applying trendy designs through product directing to existing middle-aged brands like Olivia Lauren. They are also implementing customized strategies for customers familiar with online shopping.

The same goes for Fashion Group Hyungji. Hyungji I&C recently launched the fashion brand ‘Magnum’ targeting the MZ generation. Magnum is also led mainly by MZ generation employees. Hyungji, which has mainly focused on middle-aged target brands centered on street stores such as Crocodile Lady and Chatelaine, is strengthening its e-commerce sector by focusing on brand repositioning and entering platforms like Musinsa and Queenit.

An industry insider said, "With the faster changes in consumption patterns and trends centered on online purchases, there was a sense of crisis that survival would be difficult with the methods used in the past," adding, "Especially among first-generation fashion companies, product launches and branding led by MZ generation employees will become more active."

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