Street fashion brands grow on high demand from mid-age groups – Pulse by Maeil Business News Korea

South Korea’s first generation fashion groups with street stores that target mainly elderly consumers are reviving as they strategically adapt to market trends by offering high-quality, youth-infused designs at reasonable prices.

Street fashion names such as Hyungji, Sejung, and Shinwon announced strong earnings for their adult fashion brands last year, standing out against the backdrop of many leading fashion companies predominantly engaged in overseas and contemporary brands experiencing a downturn.

The success is attributed to a strategy focused on the 50-70 age group, known for their increased outdoor activities and inclination towards cost-effective shopping trends in times of rising prices.

Fashion Group Hyungji, operating women’s adult fashion brands such as Crocodile Ladies, Chatelaine, and Olivia Hassler, reported about 200 billion won ($150 million) in sales last year, but the operating profit surged by 145 percent from the previous year to 30 billion won.

The company managed to increase profit by reducing production while lowering inventory and costs.

Particularly, Crocodile Ladies, one of the company’s flagship brands, performed exceptionally well.

For instance, the Crocodile Ladies Gwangmyeong branch achieved a 10 percent growth rate in sales last year, with annual sales surpassing 1 billion won.

The store has become a local hotspot, offering snacks and drinks to create a comfortable space for customers.

The brand’s focus on releasing products reflecting trending styles among the younger demographic contributed to its profit growth.

Similarly, Chatelaine’s sales for a uniquely designed jumper released in December last year were about 30 percent higher compared to a similar product from the previous year.

Sejung’s lifestyle multi-brand shop, Wellmade, achieved sales of around 300 billion won last year, up 7 percent from the previous year.

Wellmade, with 370 stores nationwide, operates various brands catering to consumers of different age groups, such as men’s clothing brand Indian and Bruno Baffi, and women’s clothing brand Dailist.

In the second part of 2023, the company launched a new men’s life casual brand, The Reable, focusing on attracting customers in their 30s and 40s.

Sejung prioritizes producing well-made clothes, especially during challenging times, and its efforts towards quality improvement have been well-received by customers. The success of key products, such as washable knits and premium goose down jumpers, reflects customer responses positively.

Shinwon’s leading women’s clothing brand, Besti Belli, achieved sales of about 50 billion won last year, up 11 percent from the previous year.

The brand has experienced two consecutive years of double-digit growth since 2021. The strong sales performance is attributed to the recruitment of new distribution agents in good commercial areas, aggressive efforts to open new stores, and strategic targeting of untapped areas.

Currently, Besti Belli has 145 stores nationwide, and Shinwon plans to expand the total number to 160 by the end of this year.

Besti Belli particularly focused on elevating the quality of materials and designs, catering to the refined sensibilities of its customer age group.

The brand’s commitment to rigorous quality control, continuous customer management, and consistent brand concepts have contributed to steady renewals, leading to sustained growth.

By Kim Hyo-hye and Minu Kim

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]

This post was originally published on this site