November 21, 2024

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Shibuya Parco in Tokyo, Japan (Hyundai Department Store)

South Korean retail giant Hyundai Department Store announced Sunday the debut of The Hyundai Global, a pioneering platform designed to establish the nation’s homegrown fashion and entertainment brands in prominent international retail spaces.

The new platform will offer a strategic pathway for small to medium-sized Korean brands to enter global markets without the usual financial strains associated with international expansion. By substantially reducing costs related to space leasing, interior design and sales commission agreements, domestic brands will save over 30 percent compared to direct overseas entry, the company anticipated.

Also, it will serve as a comprehensive facilitator, managing logistics from product export and import, including customs clearance and inventory management, to negotiating store locations and operational strategies with leading retailers worldwide.

This development comes after heightened global interest in Korean content, ranging from fashion to webtoons, exemplified by the acclaim received by the nation's largest department store, The Hyundai Seoul, for its innovative content and collaborations.

"It will elevate the brand value of The Hyundai and expand our business model in tandem with domestic brands," remarked a Hyundai Department Store official.

Japan will be the first stage for the platform, with Hyundai Department Store signing a business agreement next month with Parco, a large Japanese distribution group. Together, they plan to operate pop-up stores in major Japanese cities, starting with Shibuya Parco in Tokyo.

Its initial phase will feature pop-up stores for 11 brands that will commence with Korean workwear brand Noice, followed by EMIS, Matin Kim, and Mischief. This initiative will occupy a combined space of 660 square meters at the Shibuya store.

"The launch of The Hyundai Global signifies a departure from conventional department stores merely serving as fashion merchandisers,” said Jung Jee-young, president of Hyundai Department Store. “We aim to become a global network platform, offering customers memorable experiences while fostering the growth of domestic fashion brands and others."

By Park Se-ra (serap1005@heraldcorp.com)
The Korea Herald