[Distribution Hot People] "A Hip Brand That Turns Out to Be Eco-Friendly... Prioritizing Product Quality Over Value"

"Consumers want to buy pretty clothes,

not clothes for environmental values"

Sharing technology with competitors to grow the market

[Asia Economy Reporter Jo Yujin] The share of eco-friendly fashion in the global fashion market is less than 1%. Although the message of protecting the environment is appealing, there is a prejudice that recycled yarns are inferior in quality and design compared to natural fiber garments due to the difficulties in using recycled yarns. Mongsenoo started with the idea of overcoming these limitations of the eco-friendly fashion business.

On the 3rd, Mongsenoo CEO Park Junbeom emphasized, "Our goal is to translate environmental virtuous cycle activities into business and spread this as 'sustainable consumption'." Mongsenoo is an emerging designer brand that upcycles discarded PET bottles into fashion products. It was founded through the Campus CEO nurturing project operated by the Seoul Business Agency (SBA) and Seoul National University of Science and Technology, where CEO Park was a student. Although the business started with the idea of improving the global environment through business, it does not solely target consumers who prioritize environmental values.

CEO Park said, "Fashion consumers want to buy pretty clothes; they do not buy clothes for any environmental value," adding, "This is why we do not advertise that people should buy clothes for the environment." When operating a pop-up store at Shinsegae Department Store Gangnam branch last June, they emphasized only design and quality. The goal was to be recognized as a 'hip brand that also happens to have environmental values.'

Mongsenoo also has in-house technology for developing recycled yarns. CEO Park said, "I have personally collected discarded PET bottles and conducted research and development on recipes and ideas for making recycled fabrics through literature searches." They form cooperatives with eco-friendly fashion brands and share such technological capabilities and factory information. He said, "We consider other eco-friendly fashion brands not as competitors but as colleagues to grow the market together," adding, "By sharing technological information and rapidly expanding the market, we can share the benefits when the industry matures."

CEO Junbeom Park

The domestic eco-friendly market is still in its infancy. The market size is so small that it is difficult to estimate. Considering that the global fashion market is about 2,002 trillion KRW and the annual sales of Patagonia, the world's number one eco-friendly fashion company, is about 1 trillion KRW, the market share is less than 1%. This is why Mongsenoo targeted overseas markets from the start. They chose France, the birthplace of fashion; Germany, the largest textile market in Europe; and Denmark, which led the sustainable fashion trend boom, as target markets.

The initial response was also positive. Just one month after the brand launch in October last year, they received a love call from Paris&Co, a local accelerator in France, and stayed in Paris for two months. They also received offers to be stocked at two local select shops, Suggesti and Centre Commercial. CEO Park said, "Although the official stocking at Centre Commercial was eventually canceled due to the spread of COVID-19, I think it was a great achievement in confirming market potential."

Sales grew more than fivefold compared to the previous year as of the end of August this year, but turning a profit remains a challenge. Eco-friendly fashion is difficult to mass-produce, and the cost of material development is high, making it hard to find brands that are profitable domestically. CEO Park said, "People think eco-friendly fashion is cheap, but fabrics made from recycled waste materials cost at least 1.5 to 2 times more than regular fabrics, so product costs are inevitably high," adding, "Instead of lowering prices, our goal is to gain a comparative advantage over ready-to-wear in quality aspects such as sewing and design."