South Korean fashion brands are aggressively expanding their physical presence in Japan and China, capitalizing on the global surge in interest in Korean culture. This strategic move aims to counter slowing domestic growth by tapping into lucrative international markets, with a strong emphasis on experience-driven retail.
Strategic Expansion in China
Fashion group LF is leading the charge in China, opening a Hazzys flagship store in Shanghai and employing a localized, premium strategy within department stores. Its subsidiary, CTDOTS, is also engaging the youth market with a Dunst pop-up store in Shanghai, translating online appeal into an immersive offline experience.
Musinsa, a dominant South Korean fashion platform, has established its first overseas multi-brand store, Musinsa Store Shanghai Anfu Road, blending heritage architecture with contemporary Korean design. The company has also formed a joint venture with Anta Sports Products Ltd., China’s leading sportswear company, to further penetrate the Chinese market with both online and offline offerings.
Other brands like Mardi Mercredi are also expanding their retail footprint, operating over 30 stores across China. Samsung C&T has relaunched its high-end label Juun.J with brick-and-mortar stores in luxury department stores in Shanghai.
Japan as a Key Market
Japan is another significant focus for K-fashion brands. Contemporary casual brand Satur has seen considerable success, with its Harajuku flagship generating substantial sales within its first week. Building on this, Satur plans to open new outlets in Osaka and Nagoya in 2026, alongside its existing stores in China.
Overcoming Challenges and Future Outlook
The expansion into China comes after past difficulties, including geopolitical tensions and consumer boycotts. However, a recent shift in perception among Chinese consumers, with a growing appreciation for Korean style, bodes well for these ventures. Data indicates a rise in direct online purchases of Korean fashion items by Chinese consumers, with Korean clothing exports to China showing significant growth.
Industry insiders believe that successful expansion in China, the second-largest market after the US, could propel the Korean fashion industry to new heights. The focus is shifting towards long-term brand building through experience-driven retail in prime locations, signaling a new chapter in the K-wave phenomenon.
