South Korea’s retail giant E-Land Group has set its sights on Vietnam as its next target market after China, planning to open 10 outlets there by the end of 2025.
According to fashion industry sources on Monday, E-Land World Ltd. officially launched an online shopping mall last month to sell products under its low-cost brand WHO.A.U to Vietnamese customers.
The company plans to open 10 brick-and-mortar stores in prime locations like Hanoi and Ho Chi Minh City next year. E-Land has also enlisted popular local singer Hòa Minzy, often referred to as the "Vietnamese IU," as a brand model to spearhead its marketing efforts there.
WHO.A.U's Vietnamese brand model Hòa Minzy (Courtesy of E-Land World) IU is a popular Korean actress and singer-songwriter.
Although E-Land operates a manufacturing plant in Vietnam, after acquiring the local company Thanh Cong in 2009, it has not yet ventured into the country's retail sector.
VIETNAM: E-LAND’S NEXT CHINA
E-Land has been successful in China for years, with its brands such as SPAO and New Balance Kids posting solid sales in the country.
WHO.A.U's signature bear mascot Steve The company is now targeting the Southeast Asian market, including Vietnam, as its “next China” market, led by its WHO.A.U brand.
Launched by E-Land in 2000, WHO.A.U is a Korean fashion brand, or K-fashion, inspired by American casual styles rooted in the US West Coast.
The brand's sales have achieved remarkable growth, increasing from 48 billion won ($34 million) in 2020 to 90 billion won last year.
The WHO.A.U brand’s sales are expected to surpass 100 billion won this year, according to industry officials.
E-Land attributed the WHO.A.U brand’s rapid growth to its rising popularity in China and Southeast Asia.
A SPAO brand store in a Shanghai shopping mall (Courtesy of E-Land) In many Southeast Asian countries, the brand is known because members of the popular Korean TV variety show Running Man wear its clothes.
The brand’s appeal draws foreign tourists to its stores in Korea to the extent that duty-free sales have leaped 40% this year compared to 2023.
It’s not uncommon for foreign tourists to queue up at the Shilla Duty Free store in Yongsan, Seoul, to shop at the WHO.A.U. outlet, industry officials said.
WHO.A.U’s Dongdaemun branch within the Hyundai Duty Free store is expected to achieve a record 10 billion won in sales this year as a single outlet.
APPROACHED BY VIETNAM’S BIG BUYERS
E-Land officials said the K-fashion brand operator has been approached by large Vietnamese buyers such as Vincom and Takashimaya Department Store for a spot in WHO.A.U’s online shopping mall.
E-Land Group’s low-priced casual brand WHO.A.U store at Parkson Newcore Mall in Shanghai Analysts said WHO.A.U has solid growth potential in Vietnam on the back of its achievements in China.
They said the brand's signature bear mascot Steve has a strong character and intellectual property appeal.
WHO.A.U clothes are also priced at one-third that of similar US casual brands such as Polo and Tommy Hilfiger, giving it a significant price advantage, they said.
The Korean retailer plans to assess the local market reaction to WHO.A.U in Vietnam before possibly introducing other brands such as SPAO, a fast fashion brand.
A company official said it is also considering setting up retail operations by operating an NC Department Store in Vietnam.
Write to Hyeong-Ju Oh at ohj@hankyung.com In-Soo Nam edited this article.
