While there are steadily increasing cases of domestic designer brands highlighting overseas expansion, one company stands out in particular. It was recently reported that the brand being cultivated by fashion retail company Hago House has successfully targeted major global distribution networks in the UK, Japan, and other key markets, breaking through cumulative sales of 5 billion won. The brand achieved this economic milestone just five years after first stepping into overseas markets seven years ago, signifying a rapid rise in brand value beyond mere sales volume increase. Particularly with the arrival of the current autumn and winter season, it has been confirmed that foot traffic from major global buyers has increased by 95%, making it highly likely that the future sales target of 2 billion won will be achieved.
The secret to this brand's growth lies in its unparalleled offline network establishment. While domestic designer brands typically turn their eyes overseas after establishing a foothold in the domestic market, this brand adopted the opposite strategy. It opened stores in over 50 global flagship department stores and concept shops, including Harrods and Liberty London in Europe, SKP and Lane Crawford in China, Isetan in Japan, Bloomingdale's in the Middle East, and SSENSE in North America, first building brand awareness on the global stage. While it is located in only four major department stores domestically—Hyundai Department Store HQ, Shinsegae Gangnam and Centum City stores, and Lotte Incheon store—it recently opened its first flagship store in Hannam-dong, Seoul, to elevate its premium image in the domestic market as well.
This successful overseas expansion strategy was perfected based on the experiences of other brands that were once leaders in the domestic fashion market. While it was the norm to expand overseas after succeeding domestically, this brand chose the approach of building brand power in global markets before returning home. Fashion retailer Hago House acquired this brand, which recorded annual sales of 5 billion won in June 2021, and created a miracle by breaking through annual sales of 20 billion won in just four years. This is evaluated as a powerful case where success in global markets directly translates to domestic market growth, and is positioning itself as a new growth model for the Korean fashion industry.
In the future, Hago House plans to further accelerate overseas expansion for fashion brands. This is because, in a situation where the domestic market is struggling, the overseas market is receiving attention as the only breakthrough. The brand, which currently operates over 20 stores, plans to increase the number of stores to over 30 by the end of this year and is actively exploring new markets such as Southeast Asia, Eastern Europe, Africa, and South America, with plans to open its first stores in Mongolia and Vietnam. A relevant official stated that the plan includes expanding stores focusing on the Asian market, where the influence of the Korean Wave has grown rapidly, and also targeting promising new markets such as Africa and South America.