Korean fashion brands shift China strategy to tap local distribution networks

South Korean fashion companies are stepping up efforts to expand in China’s roughly $420 billion fashion market, increasingly partnering with local distributors instead of operating their own subsidiaries and stores to reduce costs and risks.

According to sources from the fashion industry on Monday, TBH Global Co. plans to re-enter China about five years after exiting in December 2021 through the sale of its Chinese subsidiary. The company will partner with Guangzhou-based fashion group Duoyi Co., which operates more than 1,300 stores and has a broad presence on major e-commerce platforms.

TBH Global plans to relaunch its premium menswear brand MARCBRICK and expand its Time Out label through the partner’s distribution network.

Samsung C&T Corp.’s fashion division is also working with local distribution specialists. Misto Holdings Corp.’s Chinese and Hong Kong units will handle distribution of designer brand juun.j in Greater China through 2030. The brand opened a store in Chengdu in July and entered the Tmall e-commerce platform.

Misto Holdings also distributes several Korean labels in the region, including Mardi Mercredi, Marithe Francois Girbaud, and Matin Kim, allowing brands to tap established local networks rather than build their own from scratch.

LF Corp.’s Hazzys brand has operated in China since 2007 in partnership with local fashion company Baoxiniao.

LF oversees brand strategy, while its partner manages product planning, manufacturing and stores. Hazzys now has about 600 stores in China.

Kolon Industries Inc.’s outdoor brand Kolon Sport and fashion platform Musinsa have also entered the Chinese market in partnership with Anta Sports, the country’s largest sportswear company.

According to the Korea Trade-Investment Promotion Agency (KOTRA), Korea’s textile exports to China reached $1.37 billion last year, surpassing exports to the United States for the first time. Korean brands are also gaining ground in segments such as women’s apparel, athleisure, and streetwear.