Hyoungji Elite Expands School Uniform Business in China... 25% Sales Increase Last Year
Expansion into China in 2016 with Premium School Uniforms
Broader Focus on Functional and Mid-to-Low Priced Lines, Strengthening Online Sales
Hyungji Elite is reorganizing its sales organization in the Chinese market and expanding its business scope to functional and mid-to-low priced school uniforms.
According to Hyungji Elite on the 25th, the performance of its Chinese joint venture, Shanghai Elite, is estimated to have grown by about 25% compared to the previous year.
Hyungji Elite, focusing on the growth potential of the Chinese and ASEAN markets, entered the Chinese market in 2016 by establishing the joint venture Shanghai Elite in partnership with BONO, a subsidiary of Baoxiniao Group, a leading Chinese fashion company. Hyungji Elite initially introduced premium school uniforms and gradually increased its recognition in the Chinese school uniform market. It supplied uniforms to key schools across China, including private and international schools.
Shanghai Elite’s strategy this year is to expand market share through product diversification and reorganization of the sales organization. To satisfy the existing demand for premium school uniforms, it plans to continuously introduce products made with functional fabrics such as Coolmax and UV protection, and supply various uniforms needed in educational settings, including swimwear, doctoral gowns, and single-piece uniforms.
It will also broaden its target audience by developing a mid-to-low priced school uniform line. By rationalizing fabric and processing technologies, it aims to secure price competitiveness and conduct sales targeting the mid-to-low priced market, including local education offices and public schools in each region.
In line with market segmentation, the sales organization will also be reorganized. A new online operations team will be formed to upgrade the ‘WeChat platform.’ With the platform reorganization, the online share is expected to expand, accounting for about 40% of total sales.
Efforts to strengthen exchanges with government and school officials, parents, and students will also be made. Following last year, it plans to participate in the school uniform fashion show held during Shanghai Fashion Week this year to promote differentiated design and quality competitiveness. It will also focus on strengthening consumer contact through experiential and educational programs for local students. Following a visit to ‘Fudan University’ for elementary school students from uniform-supplied schools at the end of last November, this year it plans to visit the AI research base of ‘Jiaotong University,’ another prestigious university in China.
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A Hyungji Elite official stated, “As demand for high-quality premium school uniforms increases, we are continuing to see performance growth in the Chinese market despite the global economic downturn. With the expected lifting of the Chinese government’s ban on Korean content, we will strengthen exchanges and cooperation with the local corporation and provide active support to sustain steep growth going forward.”
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