Luxury brands go solo in Korea
In this article (4)
Luxury brands are increasingly establishing their own Korean branches, rather than contracting with Korean companies to enter the market.
In doing so, they are hoping to generate more earnings through direct and effective customer management.
Goyard, the French leather goods maker, recently lowered some of its prices and terminated a sales agreement with Galleria, in favour of establishing its own Korean branch.
Hugo Boss, which was introduced in Korea back in 1999, also launched its Korean branch last month and will start managing its own stores in Korea.
Moncler, whose sales channels in Korea were owned exclusively by Shinsegae International since 2009, has developed a joint venture in Korea with Shinsegae.
Questions & Answers
Q.What is the primary motivation for luxury brands to establish their own Korean branches?
What is the primary motivation for luxury brands to establish their own Korean branches?
Luxury brands are increasingly establishing their own branches in Korea with the aim of generating more earnings. They hope to achieve this through more direct and effective management of their customer relationships.
Q.Which luxury brand recently adjusted its pricing strategy in Korea?
Which luxury brand recently adjusted its pricing strategy in Korea?
Goyard, the French leather goods maker, recently lowered some of its prices in the Korean market. This move coincided with the termination of its sales agreement with Galleria and the establishment of its own branch.
Q.How has Moncler changed its operational structure in Korea?
How has Moncler changed its operational structure in Korea?
Moncler, whose Korean sales channels were exclusively owned by Shinsegae International since 2009, has now formed a joint venture with Shinsegae in Korea. This represents a shift from its previous distribution model.
Reader pulse
Is direct brand management in Korea a winning strategy?
18,325 votes so far