K-beauty and fashion are causing a sensation around the world. South Korean cosmetics have surpassed traditional powerhouses like French cosmetics to become the number one exporter in the U.S. and Japan, establishing themselves at the center of the global market. The fashion sector is also experiencing continuous growth. ChosunBiz has conducted a relay interview with recognized beauty and fashion brands overseas to learn about their success stories and differentiated product philosophies. [Editor's note]
“Overseas consumers are curious about what South Koreans wear. It should be based on how well and how popular we are in Korea.”
Lee Joon-sung, head of strategy at Hago House, which operates the fashion brand Matin Kim, said the key condition for the success of K-fashion overseas is first gaining recognition from South Korean consumers.
As interest in Korean culture centered around K-pop, K-dramas, and K-movies spreads globally, interest in Korean consumer goods is also growing. Indie brands that are more famous overseas than in Korea are becoming symbols of K-beauty, and the spicy Buldak Bokkumyeon, which is difficult for Koreans to endure due to its heat, is decorating supermarket shelves worldwide.
Matin Kim is one of the brands gaining attention as a leader in the K-fashion market. Founded in 2018 by designer and influencer Kim Da-in, the brand was acquired in 2021 by Hago House, an investment firm under Daemyung Chemical. Annual sales, which were around 1 billion won in 2018, grew to 50 billion won in 2022, 100 billion won the following year, and reached 150 billion won last year. This year, they aim for sales of 200 billion won.
What is encouraging is that despite Kim Da-in, the founder of Matin Kim, stepping down from management in 2023, the brand continues to grow.
The key to their growth lies not just in investing in the brand, but also in Hago House actively nurturing (incubating) the brand. They provide investment for promising brands and inject specialized personnel from Hago House, who have backgrounds in large corporations, helping to reorganize everything from organization to personnel and financial structure to support greater growth. They also develop offline sales channels beyond online platforms.
Global expansion is also gaining momentum. Matin Kim has opened stores in Japan, Hong Kong, Taiwan, and Macau. On the 24th of last month, they opened their first store in Japan at Miyashita Park in Shibuya, Tokyo, where 4,000 visitors came in just three days, generating sales of 320 million won. The primary customers were women in their 20s and 30s. Musinsa, the distributor responsible for Matin Kim in Japan, explained that they have significantly exceeded their targets.
This year, Matin Kim is conducting aggressive marketing targeting the global market. They previously collaborated with the luxury brand Coach, popular among the U.S. MZ generation (born between 1980 and 2000), and participated in advertising for the Netflix original series "Squid Game 2," leaving a mark on a global audience of young consumers. The company plans to strengthen global marketing with the goal of entering the markets of over 30 countries this year.
On the 30th of last month, ChosunBiz met with Lee Joon-sung, head of strategy at Hago House, at their Pangyo headquarters to learn about the growth secrets of Matin Kim. Joon-sung, who joined Hago House in August 2023 after planning fashion and beauty brands at major fashion companies like Shinsegae International, participated in a Q&A.
“We successfully opened the Tokyo Shibuya store, our first in Japan. Did you expect the popularity?”
“I anticipated some level of response. We previously operated pop-up stores in Japan four times, and each time there were long queues waiting, which received positive feedback. Last year's pop-up store at Shibuya Parco attracted over 3,000 visitors on the first day. This store also attracted more attention than expected. On the opening weekend, customers had to wait over two hours to get in.”
“What do you think is the reason for Matin Kim’s popularity in Japan?”
“The influence of the Korean Wave is significant. Amid overall interest in Korea, it seems that interest in cosmetics and fashion has also grown. The Seongsu flagship store also played an important role. Since COVID-19, unlike before, tourists from various countries have naturally increased and created a lot of viral interest.
Interest in the products themselves has also played a part. There are opinions that local brands in Japan are too expensive and boring, but Matin Kim offers trendy yet accessible designs with price advantages that resonate with consumers in their 20s and 30s. According to local reactions, they report that there are no clothes as stylish at this price point in Japan. Interestingly, they have not used big models or run ads, nor collaborated with influencers, yet people say they follow Matin Kim because they find it stylish. I understand that department stores in Japan and Taiwan also want to add Matin Kim to trendy spaces.
“What differences exist between foreign and domestic customers?”
“I don’t feel there are major differences, but if there is a small one, it’s that they seem to be more interested in clothing. Domestically, the responses to miscellaneous goods and clothing are about equal, while in Hong Kong, clothing sales are higher. We try to respond to local markets based on their reactions.”
“What do you think is the driving force of K-fashion?”
“In the past, the fashion market was driven by a few famous brands. When a renowned brand collection was released, it set the trend, and similar products would follow; that was the old formula for fashion brands. However, these days, there is clearly a unique fashion trend specific to Korea, which they refer to as 'the Korean taste.' Employees in their 20s consuming Matin Kim say that there is a 'slight difference' that makes it stand out. Even similar blouses and pants reflect more style. It seems there is something unintentional and undefined that constitutes Matin Kim's charm. I’ve heard that the MZ generation dislikes being confined or defined.
The unique atmosphere of the design studio has also contributed. Typically, designers in domestic brands wear clothes from luxury brands instead of their own, but all ten designers here wear only Matin Kim. Since the young designers are fans of the brand themselves, creating clothes they want to wear seems to resonate with customers around the same age.
“This year, Matin Kim is launching a global project.”
“Starting online and expanding offline, as well as extending to neighboring countries and globally, strengthening global strategies is a natural progression in the brand’s lifecycle. Earlier this year, we collaborated with the U.S. luxury brand Coach. Coach, which is popular among the U.S. MZ generation, offered a collaboration to Matin Kim, which has fandom among the MZ generation in Asia, in order to expand its global influence. Coach produced bags, and Matin Kim made clothes that sold out. Based on this collaboration, we ran ads for 'Squid Game 2' on Netflix and conducted in-flight advertising on 133 Korean Air flights traveling to 34 countries.
It may not seem logical for a brand that does not even have a store in the U.S. to conduct global advertising. After the Coach collaboration, social media reactions included remarks like ‘What on earth is Matin Kim doing collaborating with such a brand?’ However, we believe that by proposing our brand to global consumers through marketing, we can enter the global market more quickly based on the awareness gained. In fact, after executing the Coach collaboration and Netflix ads, in January, Matin Kim’s website saw a 218% increase in overseas visitors, and overseas sales rose by 207%.
In the past, when Korean brands entered overseas markets, many failed after forcibly trying to elicit responses by opening local stores first. We plan to instead introduce interesting issues to the global market, then enter foreign markets based on the reactions.
“What conditions do you think are necessary for K-fashion to succeed overseas?”
“The most important thing is how well we are doing in Korea. There are no successful cases abroad for brands that lack presence in Korea. An anecdote from Eastern Europe is that when a Matin Kim model was a foreigner, a local asked, 'We’re curious about how Koreans dress.' Foreigners are indeed curious about how South Koreans wear clothing.
Looking at the responses from abroad, I believe that the global success of K-fashion is valid. Although there are still many places in Europe, the fashion capital, where Korean fashion has not been tried, the rapidly growing fandom of K-pop leads to increasing interest as people see the clothes worn by K-pop stars.
“There are opinions that K-fashion is growing more slowly compared to K-beauty and K-food.”
“This is due to the structural limitations of the fashion industry. Fashion is subject to constraints such as body types, sizes, and seasons, and the trend cycle is short. Since the clothes are designed considering Koreans, they can be easily accepted in Asia, but many factors must be considered for further expansion. However, limits can be overcome through miscellaneous goods. In the case of Matin Kim, the proportion of accessories reaches 50%, making overseas expansion easier. Accessories like bags and wallets are not restricted by body type or size and can be sold for a long time. Many male customers also purchase female-designed accessories.
“Are there plans to expand into product categories like cosmetics?”
“Matin Kim launched cosmetics in 2023, but the internal policy now is to focus on the core business as the brand's growth speed is too fast. I previously planned beauty brands in my last job, but the formula for success in cosmetics is distinctly different from fashion. While it may seem easy, it’s actually more challenging. Of course, we are keeping the option for category expansion open in the long run. Based on customer responses, we previously launched men’s clothing, which serves as an example. We noticed that T-shirts, windbreakers, and hats, originally released as women’s wear, were also selling well to male customers, prompting us to add a men's line.
“What is your ultimate goal?”
“The goal is for everyone in the world to know and wear Matin Kim. Internally, there is a consensus to work with a sense of mission as a leader in K-fashion. More than 40 brands under Hago House, including The Found, Uniform Bridge, plan to integrate this system and step up the growth ladder.