Hansome, Overseas Wholesale Sales from January to April This Year Grow 60% Year-on-Year
New Contracted Companies Also Increase by 44%, Shift to Online Proves Effective
Hyundai Department Store Group_Hansome System Studio 2021 Fall Winter Season Paris Fashion Week Collection
[Asia Economy Reporter Lim Hye-seon] Despite the global fashion market contraction due to the COVID-19 pandemic, Handsome is experiencing rapid growth in its overseas business. Following last year, its overseas wholesale performance in the first quarter of this year has exceeded expectations.
Handsome, a fashion specialist company affiliated with Hyundai Department Store Group, announced on the 24th that its overseas wholesale sales from January to April this year reached 12 billion KRW, a 60% increase compared to the same period last year. Previously, Handsome's overseas wholesale sales last year recorded 19.8 billion KRW, a 78% increase compared to 2019. The number of companies with which Handsome has export sales contracts increased by 44% from 42 in 2019 to 60. Based on this trend, Handsome expects its wholesale performance this year to grow by more than 30% compared to last year.
A Handsome representative explained, "Global business sales have significantly increased from last year through the first quarter of this year as contract volumes with not only existing companies but also new companies have grown. Considering the global economic contraction caused by COVID-19, this is a very unusual achievement."
The company analyzed that the strong overseas wholesale performance was mainly due to the swift transition to online (non-face-to-face) consultations and contract methods with overseas buyers.
In response to the COVID-19 pandemic last year, Handsome created and operated a dedicated webpage for overseas buyers. Since one-on-one face-to-face contracts, which used to be conducted during global fashion weeks through offline showroom visits, became difficult, they built a system allowing contracts (orders) to be made non-face-to-face.
This webpage also features an ‘AR Virtual Showroom’ incorporating augmented reality (AR) technology, enabling overseas buyers to view new collections in 360-degree rotation as if they were physically present in the offline showroom. Additionally, buyers can check information such as design features and lookbooks for each collection.
To enhance understanding of the products, Handsome also produced an ‘Order Kit’ and sent it in advance by mail to buyers in over 20 countries worldwide. This kit included photos and videos detailing the materials and concepts of the new collections, as well as masks made from the main materials used in the new products.
A Handsome representative said, "As the prolonged COVID-19 situation made face-to-face contracts through offline showrooms difficult, we quickly shifted to an online format that is easily accessible without time and space constraints, which resulted in successful contracts with new companies."
The ‘localization strategy’ also contributed to the increase in overseas performance. Handsome reorganized its lineup each season focusing on so-called ‘popular products’ based on sales data and feedback from local buyers, and this strategy proved successful.
For example, since System and System Homme first participated in Paris Fashion Week in 2019, as reorders of key products such as trench coats, knits, and pants steadily increased, Handsome significantly expanded the lineup of related product groups. As a result, the contract volume for System and System Homme increased by more than 30% each season.
Last year, Handsome also introduced the ‘Global Creative Director (GCD)’ system to provide designs optimized for overseas customers. In January this year, they launched ‘System Studio,’ a ‘Global Edition’ for System and System Homme’s overseas collections.
A Handsome representative stated, "Through various attempts utilizing the global network we have built so far, we will continue to elevate the status of K-fashion worldwide."
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