Department Stores Shine with Gourmet Offerings, Discount Marts Rival 1,000-Won Shops... Survival Rules for Unlocking Consumer Wallets [K-Shaped Consumption Era] ③

Women's Fashion Brands on 29CM Triple in Two Years
Reduced Fixed Costs and Enhanced Data Utilization

#The number of domestic major women's fashion brands entering the 29CM platform more than tripled last year compared to 2023. This represents a 43% increase even compared to the previous year. It is an indicator that traditional fashion companies are rapidly moving away from an offline-focused distribution structure. In particular, there is a clear trend of expanding contact points around platforms with a concentrated base of female customers in their 20s and 30s. Whereas in the past, the focus was on designing brand positioning, store layouts, and seasonal strategies to secure space in major department stores, there is now a growing number of cases where companies develop product planning, pricing policies, and content strategies specifically for platform entry.

As 'K-shaped consumption' spreads, companies operating mid-range priced brands are shifting their business focus to online fashion platforms. This is a survival strategy to target consumer preferences by reducing the burden of high commissions and operating costs of offline channels such as department stores, while enhancing the precision of product planning using platform data.

According to the fashion industry on April 21, the transaction value of major women's fashion brands on 29CM grew by more than 67% in the first quarter of this year compared to the same period last year. For Kolon FnC's 'Lucky Chouette', the online-exclusive second line 'Chouettiz' is operated solely on the platform, resulting in a transaction value surge of over 548% during the same period. Shinsegae International's 'VOV', 'Studio Tomboy', and 'G-Cut' also saw their transaction values rise by more than 110%. 'On&On', launched in 1992, recorded over 600 million won in transaction value in March alone thanks to the effect of new spring products, and accessory brand 'Joy Gryson' also grew by more than 25% during the same period.

An industry official said, "Platforms go beyond being simple sales channels; they can optimize everything from product planning to inventory management based on consumer data," adding, "The speed and efficiency enabled by platforms were difficult to achieve with an offline-focused structure."

Major distribution channels are also responding independently as polarization between luxury and ultra-value consumption intensifies. The department store industry is focusing on renewing and investing in core stores with strong commercial power. This includes not only competition to attract luxury brands, but also efforts to transform department stores into destination spaces by combining exhibition, gourmet, and cultural content.

For example, Shinsegae Department Store is developing its Gangnam branch as the 'flagship store for the ultra-premium strategy.' It has continuously expanded its food and luxury halls, restructuring the location as a 'premium lifestyle mall' rather than a simple shopping space. In particular, the Gangnam branch's food hall has been revamped to increase dwell time by strengthening high-end gourmet content. Lotte Department Store is concentrating investment in its Jamsil and main (Myeongdong) branches. The Jamsil branch, in particular, has undergone a major luxury brand renewal and significantly expanded its food & beverage (F&B) spaces, transforming itself into a destination mall. Hyundai Department Store is fostering its Pangyo branch as a key strategic location. The Pangyo branch targets IT, family, and premium consumer groups simultaneously, increasing the proportion of food, living, and cultural content, and has established itself as a 'regional premium mall' by expanding gourmet and experiential content.

On the other hand, large supermarkets and mid-to-low-priced distribution channels are responding head-on by focusing on price competitiveness. Emart is continuously expanding its private brand (PB) product lineup and strengthening its ultra-low-price strategy. In August last year, Emart, together with Everyday, launched a new PB line called '5K PRICE,' and by the end of the year, introduced 'WOW Shop,' an in-store ultra-low-price product curation shop.

'5K PRICE' is an ultra-low-price PB line, with most products priced at or below 5,000 won. 'WOW Shop' is an in-store curated shop featuring ultra-low-price daily goods planned and sourced directly by Emart, with the key feature of minimizing intermediate distribution stages through direct overseas sourcing. In fact, about 60% of WOW Shop's sales come from products priced at or below 2,000 won, and products priced at or below 3,000 won account for 90% of sales.

An industry insider said, "Now, unless there is a significant difference in quality, consumers are very clearly choosing lower-priced products," adding, "If you cannot secure price competitiveness, it is becoming difficult to survive in the market at all."

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