South Korean fashion firms trim unprofitable brands amid slump

Fashion firms in South Korea, including Handsome Corp., Shinsegae International and the Eland Group, are now focussed on trimming unprofitable brands amid a prolonged domestic economic slump. This year marks the fourth consecutive year of single-digit growth in the fashion industry, implying an effective slowdown for many industry watchers.

The South Korean fashion market’s size is projected to reach 39.3 trillion won this year, up from an estimated 38.3 trillion won last year, according to the Samsung Fashion Institute.

Hyundai Department Store Group’s apparel unit Handsome Corp. is in the process of closing down its brands Mothan, while Shinsegae International suspended its Banana Republic business in August, according to a South Korean news agency report.

Retail giant Shinsegae’s apparel arm Shinsegae International Inc. is re-examining the launch of a new handbag brand, originally planned for the second half of this year.

Eland Group, a major South Korean outlet mall operator which sold its brand Teenie Weenie to a Chinese company in January, said it will continue to sell other brands to reduce its debt ratio and improve its financial situation.