South Korea’s retail giant E-Land Group has achieved 1 trillion won ($689 million) in Korean sales of the global sports footwear and apparel brand New Balance, of which E-Land has the exclusive sales license in the country.
According to fashion industry sources on Monday, Korean sales of products bearing the New Balance brand stood at more than 1 trillion won as of mid-December. That's a record-high figure for the US brand in Korea and the second highest among foreign brands after Nike, which posted about 2 trillion won in Korean sales.
New Balance is the fourth brand to reach the 1 trillion won sales mark in Korea following Nike, Adidas and The North Face.
Analysts said E-Land World Ltd., which manages the New Balance brand in Korea, has helped the global sportswear brand rise to prominence in the country thanks to its localization strategy and expertise at distribution and marketing.
Former Olympic figure skater Kim Yuna is the brand ambassador of New Balance in Korea (Courtesy of NB) RELAUNCH OF 530 RUNNING SHOES
New Balance Athletics Inc., better known as New Balance, or NB, is one of the world's major sports footwear and apparel manufacturers.
Based in Boston, Massachusetts, the multinational corporation was founded in 1906 as the New Balance Arch Support Company.
E-Land World secured exclusive New Balance sales rights in Korea in 2008. Back then, the brand's annual sales in Korea were just 25 billion won.
Since then, E-Land has carried out a comprehensive localization strategy that included designing and introducing Korea-specific products.
A prime example is the 530 running shoes series. First launched in 2010 and then discontinued, the shoes were reintroduced to Korea in 2020 after E-Land, based on customer data it had gathered from its own retail outlets, analyzed Koreans' foot shapes, walking patterns and fashion preferences.
E-Land proposed to New Balance’s US headquarters to relaunch the product, which became an instant hit with sales of more than 200,000 pairs in Korea.
New Balance 530 atheletic shoes DIRECT CONTROL OF NEW BALANCE OUTLETS
Another key to success has been E-Land’s focus on operating New Balance stores directly, rather than relying on big wholesalers with hundreds of outlets.
Direct operation of 200 New Balance outlets nationwide has allowed the Korean retailer to adjust to and meet consumer requirements swiftly, industry officials said.
In contrast to other sports brands that emphasize functionality, E-Land has focused on fashion in its marketing strategy for New Balance, which proved effective.
Through polished marketing campaigns and pop-up stores, New Balance has attracted a large number of new customers, particularly young women, in Korea.
New Balance's winter puffer jacket for women
New Balance’s Women’s Line hired former Olympic figure skater Kim Yuna as its brand ambassador in Korea, drawing immense interest in its “Yuna Down” jacket.
New Balance Kids, built on E-Land’s deep expertise in the children’s clothing market, has become the country's leading brand in kids' fashion.
“New Balance was little known in Korea in the 2000s. But now, it’s a brand recognized by everyone, on par with Nike. Given that New Balance is one of the top seven global sports brands, it’s clear that E-Land has contributed to the brand’s rise to its leading position in Korea,” said a local fashion industry official.
E-Land has been successful in China for years, with brands such as SPAO and New Balance Kids posting solid sales in the country. Now, the Korean retailer said it is setting its sights on Vietnam as its next target market and plans to open 10 outlets there by the end of 2025.
Write to Hyeong-Ju Oh at ohj@hankyung.com In-Soo Nam edited this article.
