Korean-Owned Apparel Promotion Companies in the U.S. and China

[ 12/17/2007 ]

Korean-owned companies that have grown through manufacturing and apparel promotion businesses in overseas markets such as China and the United States are seeking to enter the Korean market. These companies plan to develop brand businesses targeting global markets, including China, Korea, and the United States, by leveraging their production and sourcing infrastructure as well as business models built through experience working with global companies. In particular, they plan to enter the Korean domestic market by partnering with Korean creative directors and former executives of major brands, drawing attention to whether this will create a new trend in the fashion market. Designer Lim So-sook is preparing to launch a brand in partnership with a Chinese manufacturer to enter the Korean domestic market. She is pursuing a joint-business arrangement with a Korean retailer, which is expected to take shape as early as next year. Because Korean women’s wear companies continue to have weaknesses in their production and sourcing structures, the business is expected to be built by combining the respective capabilities of specialist manufacturers, creative directors, and retailers. Park Moon-gap, formerly executive vice president in charge of operations at Nasan, will establish a separate corporation in Korea early next year in partnership with a Korean-American businessperson backed by a U.S.-based apparel promotion company. Full-scale business operations are scheduled to begin late next year or early the following year, with simultaneous launches planned in the United States and Korea. The company is moving toward an SPA-style brand centered on women’s wear and will begin building its organization early next year. A global multi-brand retail concept being developed by former E-Land executive Sun Won-gyu and brand consultant Kim Yeon-soo in partnership with a Korean-owned apparel promotion company in China is also being prepared for launch the year after next. They are currently developing plans to establish a corporation and seeking partners to oversee distribution and sales, while pursuing simultaneous launches in Korea, China, and the United States. In addition, three or four more Chinese manufacturers are reportedly considering entry into the Korean domestic market, while behind-the-scenes moves by Korean-American businesspeople seeking to enter their home market have also increased significantly. An industry official said, “At a time when more specialist companies are abandoning their businesses and global companies are entering the market, the domestic expansion of production-based companies through joint ventures is both a new business model and highly likely to create formidable competitors.”