Clothes Selling Over 200 Billion Won... Home Shopping Wearing 'Luxury' Instead of 'Jumma Fashion'

Second Half FW Season Blueprint Unveiled
CJ O Shopping Edge Renamed 'The Edge' for 10th Anniversary
Lotte & Hyundai Home Shopping Upgrade PB Fashion Materials
SK Store Helen Karen Approaching 1st Anniversary
Fashion Sector Advances Amid COVID-19 in First Half
Edge Forecasts 250 Billion KRW Sales This Year

[Asia Economy Reporter Cha Min-young] There was a time when 'home shopping fashion' was synonymous with 'ajumma fashion.' However, 'AtG,' created under the stylist Han Hye-yeon's touch, broke this stereotype and brought a fresh breeze to the home shopping fashion market. This fall/winter (FW) season, the industry is expected to see overall changes, including the replacement of big models and a stronger strategy for upgrading materials.

More Luxurious PB Fashion in the Second Half of the Year

According to related industries on the 5th, CJ ENM O Shopping Division will commemorate the 10th anniversary of its representative fashion private brand (PB) AtG this fall by changing the brand name to 'The AtG' and updating the logo. Along with actress Kim Ah-joong, who has been the main model for AtG since 2017, model Park Ji-hye will also be hired to strengthen promotional marketing. The company plans to continue its multi-item strategy, offering 4 to 5 times more items than other fashion brands within the company.

Lotte Home Shopping's representative fashion PB 'LBL' will increase the use of specialized premium materials, including its existing strength in cashmere. By experimenting with variations in innerwear and selecting younger new models, they aim to attract the younger generation as well. 'Aizel' will add new products such as autumn suit sets to its existing suit product line on the 4th of next month.

SK Stoa's first private fashion brand 'Helen Karen,' launched last year with the concept of 'clothes for mothers and daughters to wear together,' is also considering a revamp strategy ahead of its first anniversary this FW season. In September this year, they plan to solidify signature items such as setup suits and pants while expanding the quantity and number of items compared to before. Last year, they only had six items in small quantities. They also plan to expand into men's product lines in the future.

Hyundai Home Shopping owns premium fashion PBs 'Laciento' and 'Milano Story.' For Laciento, modeled by actress Kim Ji-ho, they plan to sequentially release luxury lines using premium materials such as cashmere, camel, and fur. They also plan to increase brand exposure through year-round broadcasting schedules.

Performance Overcoming COVID-19

The reason home shopping companies focus on fashion PB brands is due to their performance. In the home shopping industry, which is based on brokerage fees, PB products that are directly created and distributed contribute significantly to sales. Although the commission rates for the fashion sector are not publicly disclosed, it is generally accepted in the industry that they are relatively higher compared to food and daily necessities. Especially in the first half of this year, amid the COVID-19 pandemic, the performance of the home shopping industry varied, but the fashion sector showed remarkable growth.

CJ O Shopping's AtG achieved about 120 billion KRW in order amount from January to June this year despite the adverse effects of COVID-19, already reaching about two-thirds of the previous year's full-year performance (180 billion KRW). It is expected to achieve over 250 billion KRW in annual sales this year. This is seen as a testament to the brand's strength, having ranked first in order amount within CJ O Shopping for the past four years.

SK Stoa's Helen Karen also showed strong sales, benefiting from the base effect despite being launched only a year ago. In fact, sales for the 2020 spring/summer (SS) season increased by 48.8% compared to the 2019 FW season when it was launched, achieving 103% of the sales target and exceeding internal goals. Popularity of setup products and pants led to an 80% increase in the number of ordering customers. Helen Karen ranked second in mobile order share among women's clothing brands within SK Stoa and ranked first in repurchase rate and number of reviews among women's clothing.

An industry insider said, "The products that gained popularity among consumers stuck at home due to COVID-19 in the first half of the year were relatively affordable but offered high emotional value (psychological satisfaction relative to price)." They added, "Since performance varied greatly within the industry, companies will prepare for the FW season, which complements the SS season and involves more coordinated matching."