In South Korea, A Touch Of Kink

April 11, 2011  2:30 pm

At South Korea’s recent fashion week, which just wrapped in Seoul, naughty was nice. The hint of eroticism and kink that underscored some of the best shows of the international season—especially Marc Jacobs’ namesake show and his Fall collection for Louis Vuitton—has made it to the Far East, too. But here in Seoul, even hedonism is structured. High-end business meetings still include polished hostesses called gisaeng, Korea’s version of geishas, while a rising trend among bored matrons are loud clubs where women select their own boy toys. And fashion’s fantasy world was no different. The strongest shows at Seoul fashion week were inspired by the tensions between release and restraint that underscore Korean society.

Ha SangBeg, Seoul’s lovable agent provocateur, created a joyful collection inspired by Nobuyoshi Araki’s Kinbaku photos of erotically bound Japanese women and Azzedine Alaïa’s color blocking. SangBeg tied traditional black rope in a “beautiful bondage” pattern over body-con micro-dresses in neutrals (left) and neon and tangerine-hued men’s sweaters. The show took place in the W hotel’s chic Woo Bar, where a trio voguing after the show demonstrated another form of disciplined decadence. The frisson of S&M references also ran through less notoriously boundary-breaking collections. Little leather dresses with inlays of grey and brown suede at Lie Sang Bong Paris were sophisticated and slinky. Stunning cape-back silk minidresses at Kaal E. Suktae bore prints of belts and bound hands. And even the elegant upscale hipster label Johnny Hates Jazz featured pleated leather A-line and pencil skirts whose touch of kinkiness only emphasized their conservative cut.

*Reference - http://www.style.com/stylefile/2011/04/in-south-korea-a-touch-of-kink

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KEY METHODS OF DOING BUSINESS IN KOREA

Market entry


The following market entry options are recommended for UK apparel companies;


1. Direct import – high marketing positioning
British suppliers who target the premium fashion market should have a 
capable exclusive sales agent/distributor who has an established network with 
key retailers and extensive market knowledge. A long-term perspective and 
reliable partnership between the supplier and sales agents is one of the key 
factors for success. 



2. Brand licensing in Korea
Many international brands are  manufactured in Korea under license. DAKS is one 
example of the license  brand that has been successfully marketed in Korea.  For UK 
fashion companies interested in brand licensing for the Korean market, a trade mark 
registration is prerequisite. Also, if  the  UK  brand owners want to keep a consistent 
international brand image in all export markets, they should give a local licensee clear 
direction on brand positioning, and should pay careful attention to the wording of the 
license agreement to avoid losing control over the brand.





Distribution channel 


Distribution channels for imported apparel are diversifying into flagship stores, 
traditional shopping districts and direct sales. Speciality imported apparel shops are 
selling multiple brands at a cheaper price than department stores. These shops 
continue to the increase in popularity of imported apparel.

• Department stores
• Select shops of foreign brands
• Discount stores
• Traditional shopping districts
• On-line shopping (TV & Internet)

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FASHION BUSINESS OPPORTUNITIE IN KOREA

As the 13th largest economy in the world, South Korea’s population of  close to  50 
million offers tremendous opportunities for UK  fashion  companies. South Koreans 
have experienced incredible increases in personal income and spending power, which 
is concentrated  but not exclusive to  the Seoul Metropolitan Area.  “Greater Seoul” is 
one  of Asia’s most important business hubs and home to almost half  the country’s 
population.


Middle and  upper class consumers have leant toward overseas brands since 2003. 
Foreign brands take advantage over domestic ones in terms of both brand recognition 
and marketing. Luxury foreign brands have dominated the nation’s high-end market 
and are now moving  in  to the mass market. The demand for  imported  mid-priced 
fashion brands is also increasing in Korea; foreign companies are taking market share 
from previously dominant local companies.  The so-called fast fashion market is 
growing rapidly in Korea as well. In particular, younger Korean consumers with fastchanging consumer tastes and who like lower-priced but trendy apparel, are willing to 
take up fast fashion of SPA (Speciality retailer of Private label Apparel) brands. 


The steady reduction in tariff barriers against imported fashion goods (Apparel 13%, 
Handbag 8%, Shoes 13%, Others 8% / VAT 10%), its evolving distribution system 
and diverse consumer tastes have  opened the market to foreign including  British 
fashion brands. The EU-Korea Free Trade Agreement (FTA)* was initialled in October 
2009, and is expected to come into force in the second half of 2010. The effect of the 
FTA will be to eliminate tariffs on 97% of  goods traded  between  the EU  and Korea
(within three years). The effect on the fashion sector is that the present  duty levied 
on imported apparels will fall to zero when the FTA kicks in.  Thus it will create a real 
"first to market" opportunity for UK and EU suppliers.


* EU-Korea FTA
The EU and South Korea finalised negotiations for a  Free Trade Agreement (FTA) 
on 15th October 2009. The agreement could deliver up to  Euros32billion of 
increased trade between the two  territories. The FTA should boost the UK’s 
commercial relationship with South Korea. UK’s exports to South Korea increased 
in  2007 and 2008  by  2.3% and 1.6% respectively. The deal still needs to be 
ratified by the respective legislatures.  

*Reference (www.uktradeinvest.gov.uk - Fashion market – South Korea)

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Fashion Customer in Korea

Women's Apparel
During the past couple of years, as their tastes have evolved, many Korean working women have shown diverse tastes in office attire, with their preferences shifting toward less formal, but gorgeous, sophisticated and professional look at work. Young designer’s brands and contemporary fashion brands are popular amongst Korean women. Since 2003, Marc Jacobs, CK Calvin Klein, Vannessa Bruno, Jill Stuart, SKNY, Theory, Sandro, Jadic et Voltaire, Bluemarine, Paul & Joe, See by Chloe have made inroad into the Korean market and now are enjoying good sales results in the Korean market.

Men's Apparel
Lately Korean male consumers have shown significant purchasing power on fashion goods. In particular, Korean young men have become fashion conscious in both their leisure and professional apparel needs, spurring a sharp increase in demand for imported casual wear and accessory brands. For Korean male consumers, wearing good brands is a way of showing off one’s social status and wealth. Kiton, Brioni, Ermenegildo Zena, Armani, Paul Smith are expanding market share in the high-end market. Demand for imported men’s casual brands is increasing amongst young consumers.

Baby’s and Kid's Apparel
The total size of the Korean market for children’s and baby wear was £780 million in 2008. Korean parents value high-end fashion and thus spend a lot on their children. The low birth rate in Korea (1.2 child per family) encourages high spending. As a result, foreign premium brands do well in Korea. Directly imported and licensed foreign brands such as Burberry Baby & Children, Ralph Lauren Baby & Children, Gap Baby & Kids, and Daks Kids are popular with Korean shoppers who like their quality Fashion & Clothing – South Korea
and brand name. The result is that local department stores are now targeting new 'luxury and sophisticated' foreign brands to sell to high-income brackets and working professionals.

Sportswear-Golf wear
The Korean sports wear apparel market has also registered strong growth, especially sales of ski, water sports, hiking and golfing wear. In particular, Golf wear has shown the most significant increase in demand. Industry statistics indicate that this market has expanded by 30% annually during the last 4-5 years. There has also been a large increase in the number of Korean women golfers, with women's golf wear accounting for about 45% of the overall golf wear market. Many apparel companies have launched women's apparel lines.


*Reference (www.uktradeinvest.gov.uk - Fashion market – South Korea)

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CHARACTERISTICS OF MARKET IN KOREA

The Korean fashion market has evolved according to global fashion trends.
Young designers’ contemporary fashion brands are becoming popular amongst Korean working women. The number of select shops selling various foreign brands has increased rapidly over the past four or five years. A lot of local distributors, licensees and retailers are keen to import international fashion products from Italy, France, the US and the UK. Distribution channels have diversified, as demonstrated by various brand stores, flagship stores, traditional shopping districts and e-shopping malls. The Korean fashion industry has been hit by the effect of the global financial slowdown, like other markets. However, the Korean economy has recently shown positive signs of recovery, with a number of economic indicators improving. Large department stores keep expanding shopping space for imported apparel brands. Smaller department stores targeting middle-class consumers are also expanding; specialising in shops for imported goods. In fact, the country has seen a flood of popular foreign brands recently. Domestic fashion brands are on the brink of collapse against foreign brands’ aggressive advancement into market place. 

Statistics of Export and Import for Apparel

(excl. fashion accessories)

	Export	Changes (%) over the previous year	Import	Changes (%) over the previous year
2005	2.00	-17.9%	2.05	10%
2006	1.80	-10.1%	2.62	27.7%
2007	1.68	-6.4%	3.03	15.8%
2008	1.61	-4.1%	2.96	-2.3%*

                                                                                                 (Source: Korea International Trade Association)

                                                                          * The figure for 2008 was affected by the global economic downturn.

*Reference (www.uktradeinvest.gov.uk - Fashion market – South Korea)

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