South Korea’s retail giant E-Land Group has managed to post 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, the Korean sales of products under the New Balance brand stood at more than 1 trillion won as of mid-December – the highest-ever figure for the US brand in Korea and the second highest among foreign brands following 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., in charge of the operations of the New Balance brand in Korea, has helped the global sports-wear brand’s rise to prominence in the country thanks to its localization strategy and expertise in distribution and marketing.
RELAUNCH OF 530 RUNNING SHOES
New Balance Athletics Inc., best known as simply 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, New Balance’s annual sales in Korea were only 25 billion won.
E-Land has implemented a thorough localization strategy, including designing and introducing Korea-specific products.
A prime example is the 530 running shoes series. Originally launched in 2010 and discontinued, the shoes were reintroduced in 2020 in Korea after E-Land, based on customer data gathered from its own retail outlets, analyzed Korean foot shapes, walking patterns and fashion preferences.
E-Land requested New Balance’s US headquarters to relaunch the product, which instantly became a hit with sales of more than 200,000 pairs in Korea.
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 large wholesalers with hundreds of outlets.
Direct operations of 200 New Balance outlets nationwide allowed the Korean retailer to meet and adjust consumer requirements in a swift manner, industry officials said.
In contrast to other sports brands emphasizing functionality, E-Land has focused on fashion as its marketing strategy for New Balance, which proved effective.
Through sophisticated marketing campaigns and pop-up stores, New Balance attracted a large number of new customers, particularly young women, in Korea.
New Balance’s Women’s Line hired former Olympic figure skater Kim Yuna as its brand ambassador in Korea, gaining great popularity with the “Yuna Down” jacket.
New Balance Kids, built on E-Land’s extensive expertise in the children’s clothing market, has become the leading brand in kids’ fashion in the country.
“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 the leading position in Korea,” said a local fashion industry official.
E-Land, which has been successful in China for years, with its brands such as SPAO and New Balance Kids posting solid sales in the country, the Korean retailer recently said it is now setting its sights on Vietnam as its next target market, planning to open 10 outlets there by the end of 2025.
By Hyeong-Ju Oh
ohj@hankyung.com
In-Soo Nam edited this article.
