Hyundai Department Store has established a dedicated team for its K-fashion global business. This move is aimed at enhancing the operational capabilities of the K-content export platform 'The Hyundai Global,' which has achieved success in Japan over the past year. To further this goal, an investment of 30 billion won has been completed in Mediquarters, which has been responsible for local operations of The Hyundai Global in Japan.
According to relevant industry sources, Hyundai Department Store has established The Hyundai Global team within its department store product division through an organizational restructuring in early last month. The plan is to elevate The Hyundai Global, which has been operated as part of the youth team (young casual) in the fashion division, into a separate business team and develop it into a platform for nurturing global brands.
Additionally, Hyundai Department Store held a board meeting last month to finalize a 30 billion won investment in Mediquarters, an operator of K-fashion and platforms. This investment represents the largest corporate venture capital (CVC) scale since the establishment of Hyundai Department Store. A company official noted, "We decided to invest 30 billion won in Mediquarters as a strategic investor (SI) to enhance the competitiveness of The Hyundai Global in Japan."
◇K-fashion shakes Japan, now elevating properly
Hyundai Department Store confirmed the potential for this business by operating a pop-up store for The Hyundai Global in Tokyo's Shibuya Parco last May. Over about two and a half months, it opened a pop-up store introducing 11 K-fashion brands in relay, generating sales of approximately 3 billion won. This achievement reached 150% of the target, marking the highest sales among pop-up stores conducted at Parco.
Building on its success, The Hyundai Global opened a second pop-up store at the same location from October to December last year, and has been operating pop-up stores in three department stores in Osaka, Japan, since last April.
Industry sources indicate that the planning for The Hyundai Global by Hyundai Department Store was based on the achievements of The Hyundai Seoul. Amid challenging management conditions for domestic department stores, K-beauty and K-fashion have drawn interest from overseas customers.
Opened in May 2021 in Yeouido, Seoul, The Hyundai Seoul has attracted numerous K-fashion brands and pop-up stores on its second basement floor, emerging as a mecca for the MZ generation (born from the early 1980s to the early 2000s). Based on this, The Hyundai Seoul surpassed an annual sales figure of 1 trillion won within just two years and nine months of its opening, even without featuring any luxury brands.
The proportion of foreign customers has also increased, rising from about 3% in February 2023 to 15% last year. An industry insider noted, "I understand that the business of selling K-fashion in Japan was initiated with the observation that Japan has the highest proportion of overseas customer payments at The Hyundai Seoul," adding, "It coincided with a time when Japanese department stores needed new content due to aging and obsolescence, accelerating the business."
◇Mediquaters, which received a 30 billion won investment from Hyundai, also draws attention
According to Samsung Securities, the Japanese fashion market is projected to be worth $87 billion (about 120 trillion won) as of 2023, ranking fourth after the United States, China, and India. Hyundai Department Store is investing in Mediquaters, which is responsible for the local operations of The Hyundai Global in Japan, to strengthen the competitiveness of the platform. The structure involves Hyundai Department Store handling local department store entry contracts and brand sourcing, while Mediquaters is responsible for product buying, operations, inventory management, logistics, and marketing.
Mediquaters, a fashion, beauty, and platform startup established in 2016 by CEO Lee Doo-jin (40), is evaluated as a company with strengths in the distribution of K-fashion in Japan. It owns 15 fashion brands such as Mahagrid, The Barnet, and Nice Ghost Club, and 4 beauty brands like Anilo and Medi247, having launched the K-fashion platform 'NUGU' in Japan in 2020, securing a subscriber count of 1.02 million.
In particular, NUGU is praised for capturing Japanese customers in their 20s and 30s through marketing utilizing local influencers. Recently, it expanded its scale by acquiring the fashion and beauty platform 'Shoplist,' known as the Japanese version of Musinsa.
To date, the cumulative investment amount, including that of Hyundai Department Store, is 133.5 billion won, with a corporate value estimated at 300 billion won. The consolidated revenue last year was 230 billion won, reflecting an increase of about 50% compared to the previous year. The net profit for the period was 8 billion won.
CEO Lee Doo-jin of Mediquaters stated, "Unlike fashion platforms that originated domestically and entered Japan, NUGU is a K-fashion platform that has been thoroughly localized for the Japanese market," adding, "Our goal is to continue to engage in business that helps K-fashion's entry into local markets."
Hyundai Department Store plans to open K-fashion brand stores and pop-up stores in major urban commercial districts (department stores and shopping malls) in Japan in collaboration with Mediquaters. Previously operating only pop-up stores, the company aims to establish long-term growth drivers through regular stores. According to industry sources, contracts with major Japanese retailers are currently in the finalization stage, and the business is expected to become visible as early as next year.
Additionally, it plans to establish a dedicated section for The Hyundai Global on the online platform NUGU and expand its reach to countries such as Taiwan, Thailand, and Hong Kong. A representative of Hyundai Department Store noted, "We are in discussions for entry with major department stores and shopping malls in Japan," adding, "The timeline for entry into countries outside of Japan has not yet been determined."