Market Analysis: British fashion in South Korea

The UKTI - the British Trade and Investment unit - is currently on a mission in South Korea to help British fashion companies build relationships with local companies and distributors to export their goods to Seoul and beyond. The UKTI selected a handful of brands to join the mission

and introduce their collections to the Korean market, which is currently the 12th leading economy in the world. Already Korea is the 3rd largest importer of British goods in all of Asia and while fashion brands are available in local retailers, the market is complex and must be understood in order to gain success.

Contemporary fashion is a key growth area

In 2014 the Korean fashion market is expected to grow 2 percent to 19.6 billion pounds. Womenswear still represents the largest share, but menswear, sportswear and accessories are not far behind. Contemporary fashion is a key area of growth, and the Koreans look toward the Europeans for trends as the leading luxury brands yield much influence.

Myungkyung Kim, a forecaster and research analyst Samsung Fashion Research Institute, says that the potential for British fashion brands to expand is to tap into the customer and understand the movement of the market. In womenswear, she states: "the gap between rich and poor will widen and growth will be concentrated on high flying brands and zoning." Elsewhere, she sees growth in mid-priced brands and diversified product lines, reflecting the lifestyle of working consumers.

Jenny Koo, a business developer for Kolon who has worked with brands such as Jimmy Choo and Marc Jacobs, says there are several conditions to consider for entering the Korean market. Koo states distributors and joint venture capitalists will look at a brand's status in its country of origin and its brand awareness or prowess. Companies will also look to see how their business is in Japan, which is often seen as a benchmark for Korean fashion success.

This week the UKTI fashion sector organised a fashion exhibition to showcase British fashion brands to key Korean buyers and distributors. Brands including Sunspel, Orlebar Brown, Lily & Lionel and U Clothing brought their AW14 collections to Seoul to meet with local indepent retailers, department stores and distribution partners.

The UK's reputation for creativity in the fashion industry is high respected and brands such as Paul Smith, Cath Kidston and Hunter have achieved enormous financial success. The golden rules for success in Korea are of course somewhat different than in the UK. The Koreans mix business with pleasure and entertainment, drinking and gifting is very common, despite the value of formal and facilitated introductions.

The good news is the Free Trade Agreements in place between the UK and Korea allow for seamless export and with a total economic growth in 2014 expected to be near 4 percent, it is much higher than the UK or indeed any other European nation.

Image: 10 Corso Como Seoul