Kim Ji-won, CEO of Hanse MK, "No Plans to Cut Additional Brands... Focusing on Efficiency"

Kim Ji-won, CEO of Hansae MK, said on the 20th, "There are no plans to further streamline the brands this year."

On the same day, Kim met with reporters at the opening ceremony of the 'Next Design Lab' held at Hongik University Art & Design Valley in Mapo-gu, Seoul, and stated, "(Given the difficult situation) we intend to focus on running the business efficiently."

As the fashion market continues to stagnate, Hansae MK has undertaken brand restructuring, but it appears determined to focus on business efficiency centered on the currently operated children's clothing brand 'Moimoln' and the kids' sports select shop 'Play Kids Pro (Nike Kids)'.

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Last year, Hansae MK recorded consolidated sales of 256.2 billion KRW and an operating loss of 21.6 billion KRW. Sales decreased by 20% compared to the previous year, and the operating loss increased by about 18 billion KRW.

Because of this, CEO Kim made the decision in January this year to halt production of the children's clothing brand 'Curlysue'. Curlysue Edit is a newly launched kids' fashion select shop as of August last year. It has been selling products by combining three brands: ▲Curlysue ▲Othercommaother ▲And Everything. Targeting children aged 8 to 10, the brand faced fierce competition in the children's clothing market, resulting in less favorable returns on investment. With this business closure, Hansae MK expects a sales reduction of about 22 billion KRW (7% of total sales).

Hansae MK has also reduced the number of stores for its main golf business sectors, LPGA and PGA, from 28 to 20, focusing more on online sales. This shift is due to the exodus of MZ generation (Millennials + Generation Z) who started golfing during the COVID-19 period but have since dropped off like a receding tide following the transition to an endemic phase, leading to a market reorganization centered on premium golf wear.

As a result, mid- to low-priced golf wear brands are either exiting the business or downsizing offline stores to improve cost structures. Hansae MK ended the TBJ and ANDEW brands in 2022, and last year, its subsidiary Mankun Executive Limited Company ceased operating the NBA style brand in China due to declining profitability.

Moimoln, launches 'Minardi Premium Down'. Provided by Hansae MK.

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CEO Kim is expected to focus on the Moimoln and kids' sports select shop Play Kids Pro (Nike Kids) brands in the children's clothing market. In particular, Moimoln is gaining prominence in the Japanese children's clothing market. There is growing anticipation that it can grow into a global children's clothing brand. Kim Ik-hwan, Vice Chairman of Hansae Co., Ltd., explained, "(Based on stories from acquaintances) Moimoln is gaining great popularity in Japan," adding, "They are opening stores and strengthening online marketing, and I believe it is progressing impactfully to become a global brand."

Play Kids Pro sells products from famous brands such as Nike, Jordan, Converse, and Haggis, with a total of 104 stores as of the end of last year. Haggis is a newly launched brand earlier this year, targeting parents seeking safe and high-quality clothing, with plans to expand as a 'baby total care brand.'

Meanwhile, as Hansae MK undertakes portfolio restructuring, franchise owners have expressed significant concerns about brand discontinuations. In the case of Curlysue, production will cease on April 30, and stores will operate until July to August, when spring and summer products for this year finish selling.

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