The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
Following last week’s deal in which Naver and Shinsegae bought around $221 worth of the other firm’s shares, the South Korean retail group and tech giant will unveil a luxury shopping platform this June or July, The Korea Times reports.
While the link up could help streamline Shinsegae’s logistics operations and boost gross merchandise volume, Naver is betting on its partner’s luxury credentials to strengthen its advertising, e-commerce and fintech services, according to the report. The two players are also reportedly in talks to fuse their membership systems.
The news comes hot on the heels of local e-commerce giant Coupang’s $3.5 billion US IPO as well as reports that Shinsegae is among the potential buyers of eBay’s Korean business. Shinsegae subsidiary Shinsegae International is the country’s largest importer of luxury brands, which could set it up to become the South Korean market’s leading online vendor for premium goods as shopping continues to shift online post-pandemic. Despite Coupang’s size, it has yet to stock top luxury brands; meanwhile, rival retail group Lotte is struggling to keep up with digitally savvy rivals.
Imran Amed shares his observations from a trip to the wealthy desert metropolis, home to the most lucrative stores for many of the world’s top fashion brands.
Spurred by rapid growth in the pure luxury market, global brands operating in lower-priced segments like contemporary fashion are entering the country or accelerating expansion plans.
This week’s round-up of global markets fashion business news also features India’s textile industry, Chinese beauty major Yatsen and Ghana’s newest garment factory.
Luxury fashion retailers in the oil-rich African nation keep a low profile to provide a discreet shopping environment for consumers and avoid flaunting the elite nature of their own business.