CJ ENM Establishes Brand Business Subsidiary 'Brandworks Korea'

by Lim Chunhan

Published 26 Dec.2022 09:09(KST)

Goal of 400 Billion KRW in Transaction Volume Within 3 Years

Brandworks Korea logo. (Photo by CJ ENM)

[Asia Economy Reporter Lim Chun-han] CJ ENM announced on the 26th that it will establish 'Brandworks Korea' to actively expand its brand business. Brandworks Korea is a subsidiary created by renaming the existing subsidiary Artworks Korea and absorbing CJ ENM's men's fashion and living brands.

Starting from the 2nd of next month, CJ ENM will transfer all business rights of brands with growth potential as independent brands, such as Daniel Cremieux, Odense, and 82VILLIERS, to the newly established corporation. Brooks Brothers, whose domestic business rights were acquired by CJ ENM, were already transferred last year through Artworks Korea. Brandworks Korea is expected to acquire brand-related tangible and intangible assets and personnel worth approximately 14.5 billion KRW from CJ ENM.

The priority given to men's fashion brands was influenced by the fact that about 70% of Artworks Korea's existing customers are men in their 30s and 40s. It was judged that targeting loyal customers who have accumulated loyalty through platforms like Funshop would generate sufficient synergy. Odense joined Brandworks Korea to focus more aggressively on brand development and value enhancement.

Brandworks Korea aims to expand its annual transaction volume to 400 billion KRW within three years. Alongside CJ ENM brands, it plans to increase the volume of Funshop and Brooklyn Works, operated by Artworks Korea, and to discover and develop new brands with high growth potential in the market to expand its brand portfolio.

A CJ ENM official stated, "We established a separate subsidiary to enhance the value of brands with high growth potential, secure future growth engines, and strengthen our influence as a brand operator," adding, "Next year, we will launch more diverse new businesses through Brandworks Korea."