Walk the highstreets series – Brand spotlights : Seoul edition

Spao

Spao is often seen as Korea’s answer to Uniqlo, blending the appeal of affordable basics with trend-driven designs. The brand’s charm lies in its ability to deliver good-quality essentials and timeless styles that resonate with a wide audience. Catering to men, women, and children, Spao has carved out a niche in Korea’s highly competitive fashion market. In 2019, the brand soared to the top as the most popular clothing brand among millennials and Gen Z in South Korea, surpassing international heavyweights like Zara, H&M, and even Uniqlo.

But Spao’s success isn’t just about great clothes—it’s backed by the powerhouse that is the E-Land Group. This global fashion and retail conglomerate oversees more than 60 entities and operates over 10,000 stores worldwide. E-Land’s fashion division is led by Cho Dong-ju, providing savvy business strategies include securing exclusive rights for New Balance Kids in Korea and China, giving them a strategic advantage in the booming Chinese market.

Cracking the Chinese Market: A Case of Trial and Error

Spao’s venture into China began in 2013 with the opening of its first flagship store. However, breaking into the Chinese fashion scene proved challenging. By 2017, the brand had nearly halved its store count in the region as it struggled to resonate with local consumers. Undeterred, Spao recalibrated its strategy. The brand is now doubling down on creating a familiar, Korean-inspired shopping experience in its Chinese stores—mirroring every detail, from product selection to interior design and even music playlists.

But will this one-size-fits-all approach work? While Korean culture has a strong following globally, the Chinese retail market often demands localisation to thrive. Spao’s gamble on staying true to its roots could either solidify its presence as a unique player or continue to hinder its growth.

Winning in Malaysia: A Blueprint for Success

In contrast to its challenges in China, Spao has flourished in Malaysia since entering the market in 2015 with its first store in Kuala Lumpur. Despite launching alongside fellow Korean brands MIXXO and WHO.A.U, Spao has been the only one to firmly establish itself in the region. Today, the brand boasts four stores across Malaysia, proving its staying power.

So, what sets Spao apart? It could be the brand’s ability to strike a balance between Korean authenticity and local market expectations. By offering versatile, stylish basics at an accessible price point, Spao has won over Malaysian consumers in a way its competitors couldn’t.

The Road Ahead

Spao’s journey of international expansion highlights both the opportunities and pitfalls of taking a brand global. The company’s success in Malaysia demonstrates the importance of adaptability, while its ongoing challenges in China underline the need for nuanced strategies in diverse markets.

Will Spao’s renewed push in China finally yield results? And can the brand replicate its Malaysian success in other regions? Only time will tell, but one thing is certain—Spao’s story is a masterclass in perseverance, innovation, and the complexities of global retail.

What do you think of Spao’s approach? Could their Korean-inspired strategy in China turn the tide, or will greater localisation be the key to unlocking the market’s potential? Let us know your thoughts!

Walk the highstreets series – Brand spotlights : Seoul edition

Olive Young

As K-beauty has taken the world by storm. Olive Young was top of my list to visit as soon as I touched down in Seoul. The health and beauty store stocks all the holy grail Korean skincare products from brands such as Beauty of Joseon, CosRX and Torriden. The beauty store, owned by CJ Group have more than 1000 stores across Korea and this year have international expansion plans to open a subsidiary in Japan.In the early 2010’s we saw a rise in demand for singular brand shops, but Olive Young has continuously adapted providing same day delivery service, order pick up and adapting to an omnichannel business model whilst simultaneously releasing new and up and coming brands to the store. With the rise in popularity via social media channels, Olive Young has seen an increase by 263% in sales to foreigners in the first quarter of 2024 with a most notable rise in purchase from English speaking countries. The popularity of the store is ever increasing with videos captioned ‘Olive Young Haul’ and ‘K-beauty must haves’ raising to the thousands over YouTube and TikTok. The stores success has even seen global giant Sephora ceasing all operations in South Korea this year, despite only launching in October 2019. Their financial losses were partly due to the global pandemic, but Sephora also struggled to compete against Olive Young who hold almost 90% of the market share in Korea. Olive Young are now present via online channels in 150 countries worldwide, so as the popularity of Korean beauty rises will Olive Young provide increasing competition to the global giants in the health and beauty world?