[Asia Exclusive] Park Yeon "30 Years as the Unrivaled Leader in Children's Clothing, Now Breaking into the Global Market Online"

Interview with Park Yeon, CEO of Seoyang Networks
Last Year Faced Crisis Due to Low Birthrate and COVID-19 Challenges
This Year Expected to Record First 200 Billion KRW Annual Sales and Best Performance Driven by Revenge Spending and Ten-Pocket Phenomenon

Expanding Online Distribution Share in Department Stores
Preparing to Enter Overseas Markets Including US, China, and Southeast Asia
Upgrading to Premium Market Growth
Plans for Cosmetics and Accessories Business Too

Asia Exclusive_ Park Yeon, CEO of Western Networks. / Photo by Hyunmin Kim kimhyun81@

[Interview with Myung Jin-gyu, Head of Consumer Economy Department at Asia Economy, Summary by Reporter Im Hye-sun] "This year, for the first time, we expect to surpass annual sales of 200 billion KRW, marking the highest performance in history."

Park Yeon, CEO of Seoyang Networks, which has held the No.1 position in the domestic infant and children's clothing market for over 30 years, confidently stated, "Despite adverse factors such as low birth rates and COVID-19, we are recording the highest performance ever and will create a turning point by expanding into the junior clothing market." Seoyang Networks' highest sales to date were 199.5 billion KRW in 2019. Established on April 1, 1991, Seoyang Networks has firmly maintained its leading position in the domestic infant and children's clothing market for the past 30 years. Its brands include infant and children's clothing Blue Dog, Allobot, Minkmu, kids' select shop Little Ground, and SPA Wrapping Child. CEO Park explained, "Our strength lies in a diverse portfolio that can secure a wide customer base from newborns to elementary school students," adding, "From this year, we are expanding beyond department store-centered distribution channels into the online market."

Since taking office in March this year, CEO Park has consistently emphasized customer-centric thinking and a spirit of challenge. Park said, "We must think from the customer's perspective and view things through the customer's eyes," adding, "We need to focus on designing products and developing services that meet customers' needs and expectations to gain their satisfaction and trust." She also mentioned, "Along with business efficiency improvements, we are pursuing new businesses," stating, "We are fully entering the school backpack market and are working on brand premiumization for the next season."

- The children's clothing market has been severely impacted by low birth rates and the COVID-19 crisis.

△ Last year, the domestic birth rate hit a historic low of 0.84. Coupled with the COVID-19 crisis, the children's clothing market stagnated. Seoyang Networks' sales also dropped 12% compared to the previous year. Every moment was a crisis. This year, there are still many difficulties in logistics, delivery, and sourcing overall. However, with revenge consumption reviving department store distribution channels, performance is improving. Although the domestic market is generally struggling due to low birth rates, families are investing generously in their one child. Material support is expanding proportionally to the attention given to the child. The 'Ten Pocket' phenomenon, where ten wallets open around one child?parents, relatives, and even parents' friends?is becoming widespread, leading to a surge in premium and luxury demand in the children's clothing market.

- What is Seoyang Networks' differentiation strategy?

△ We are targeting the premium market centered on Little Ground, which houses famous domestic and international brands. Imported brands are gaining attention among VIP customers and celebrities mainly in major department stores. We are achieving continuous growth centered on imported brands in line with the premiumization trend. Wrapping Child, as an infant and children's SPA brand, offers not only basic items but also trendy products at reasonable prices. Blue Dog Baby and Minkmu hold a 45% market share in the infant clothing market. Looking at sales proportions by brand: Little Ground 17%, Blue Dog 22%, Allobot 11%, Minkmu 19%, Blue Dog Baby 20%, Wrapping Child 11%.

- How is the transition to online progressing?

△ Seoyang Networks operates department stores as its main distribution channel. In response to changes, the company is making efforts to strengthen the online share overall. Currently, the online share is around 10%. The goal is to grow it to 30-40% within the next two years. To this end, we are transforming our own online mall into a comprehensive open market platform.

- What are the plans for overseas expansion?

△ It is not easy for domestic children's clothing to establish itself in overseas markets. However, Seoyang Networks is preparing for successful entry through various collaborations with partners who have know-how in China, Southeast Asia, and the Americas. For global market entry, analyzing the market and customers of overseas countries is crucial. We plan to proceed through collaboration with partners who have extensive local experience. Also, our brands have strong brand images (BI) centered on their symbols. If we effectively communicate our strengths to customers, we believe we can succeed in the global market.

- The business structure is concentrated mainly on children's clothing.

△ Seoyang Networks is a company strong in apparel. We also plan to enter accessory and cosmetics businesses. We are fully entering the school backpack market, with new designs launching for the new semester. To further penetrate the growing premium market, Blue Dog is preparing a premium line targeting next year. We are also entering the infant and children's specialized cosmetics business, aiming to create cosmetics that parents and children can use together. We plan to open flagship stores that reflect the identity of our brands. These will not only sell clothes but also offer tea and cultural experiences, aiming to become a landmark known as a 'sanctuary for mothers.' Along with the brand B-Play, we are also looking at the junior clothing market.

- Recently, the headquarters moved from Cheongdam-dong to Seocho-dong.

△ When moving, we designed an entire floor as a welfare space where employees can rest. We want to make the company a place where employees want to stay and work. Especially, we are trying various initiatives to create an atmosphere where female employees can work comfortably. Women make up 87% of Seoyang Networks' workforce. This year, we introduced group accident insurance for the first time and also implemented a performance bonus system. We share the company's overall goals and vision and collect diverse opinions so employees can create them together. We strive to build an organizational culture that is horizontal and flexible, enabling swift decisions and responses.

◇ CEO Park Yeon’s background

Graduated from Kyungpook National University, Department of Business Administration, 1988

Completed Seoul National University Fashion Industry CEO Program AFB, 2011

Joined LG Investment & Securities Corporate Team (now NH Investment & Securities), 1988

Executive Director, Corporate Sales Team, Prudential Securities, 2006

Executive Director, Sales Headquarters, LF Ladies Casual Division, 2009

Senior Executive Director, Sales Headquarters, LF Ladies Casual Division, 2011

Senior Executive Director, Sales Department, LF, 2013

CEO, Pastel World, 2016?2019

Concurrent CEO, Tribones, 2017?2019

CEO, Seoyang Networks, 2021?Present