Catalan brands incorporate learnings from South Korea in the fashion retail sector to improve sales

Fashion consumers are no longer grouped by gender or purchasing power, but by communities, much more transversal, with shared values and lifestyles. The new form of segmentation and interactive brand experiences have been some of the learnings of the Fashion Trend Tour Seoul project, the business mission organized by the Generalitat de Catalunya, through the Consorci de Comerç, Artesania i Moda de Catalunya (CCAM) and the Catalan Fashion Cluster MODACC.

The aim of the retail tour has been to facilitate the acquisition of new knowledge in order to inspire innovative concepts applicable to the products and services of Catalan fashion brands. In this context, the participating companies, such as Sita Murt, Boboli, Yerse, ESDi (School of Design), MUNICH, Mango and Simorra, have had the opportunity to visit pioneering brands in South Korea, such as Adererror in fashion, Tambourines in perfumery or Gentle Monster in glasses. During these visits, the participating companies got to know first-hand the strategies that these brands put into practice to define and communicate their identity through the art of storytelling. In addition, they have also seen how these brands consolidate and reinforce their identity through the creation of spaces for interaction with consumers.

Today, South Korea stands out as one of the world's leading economies, driven by the country's major business conglomerates, such as Samsung, Hyundai, LG and SK Group, internationally recognized for their excellence in technology, electronics of consumption and automotive. The impact of these companies is reflected in several sectors, including fashion, where the presence of technology is ubiquitous at points of sale, either through screens, devices or robots, facilitating and accompanying the interaction processes between brands and consumers

During the business mission they were able to observe how, unlike in Spain, the discount in South Korea does not play an essential role, and the promotions are not constant at the points of sale. Surprisingly, price is not the main motivator for purchases; instead, product attributes, brand, experience, and narrative are more relevant in the sales process in Seoul.

Another of the lessons learned, with potential application in the European market, is the frequent collaboration between new brands and those with a rich history and prestige. These alliances, established through joint promotion and sales actions, have an extremely positive impact on consumers.

On the other hand, in Korean culture the act of gift-giving becomes an outstanding opportunity for consumption, which is why brands generate a wide range of products designed specifically to give as gifts to third parties. This perspective offers inspiration so that Catalan brands can respond more effectively to these outstanding moments of consumption.

Finally, it was also observed that sustainability is not a major concern among Korean consumers. Unlike the European trend, sustainable proposals do not occupy a central place in the discourse of most South Korean brands. This contrast underlines Europe's continued leadership in promoting the new circular economy in the global fashion industry. These findings highlight the need to adapt to the dynamics of the South Korean market and explore innovative strategies to meet consumer preferences and behaviors in this unique business environment.

The business mission, organized by the Government of Catalonia, through the Consorci de Comerç, Artesania i Moda de Catalunya (CCAM) and the Catalan Fashion Cluster MODACC, has allowed the participating brands - Sita Murt, Boboli, Yerse, ESDi (Escola Superior de Disseny), MUNICH, Mango and Simorra - hold about thirty meetings with partners and businessmen from the fashion sector in the Asian country, as well as visiting and getting to know more than fifty points of sale and innovative retail proposals in the city of Seoul, with the aim of promoting the internationalization of Catalan fashion brands. The project also had the technical collaboration of The Hunter consultancy and the team from the Action office in Seoul.