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 brick-and-mortar 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 for Vietnamese consumers.
The company plans to open 10 offline 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.
IU is a popular Korean singer-songwriter and actress.
Although E-Land operates a manufacturing facility in Vietnam, having acquired a local company Thanh Cong in 2009, it has not yet ventured into the retail sector in the Southeast Asian nation.
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 decent sales in the country.
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, or K-fashion, brand inspired by American casual styles rooted in the West Coast of the US, such as California.
The brand’s sales have shown 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.
In many Southeast Asian countries, the brand is known as clothing worn by members of the popular Korean TV variety show Running Man.
The brand’s appeal has drawn foreign tourists to its stores in Korea, duty-free sales have grown 40% this year compared to 2023.
In Korea, it’s not uncommon for foreign tourists to queue up at the Shilla Duty Free in Yongsan, Seoul to shop at the WHO.A.U. outlet, industry officials said.
WHO.A.U’s Dongdaemun branch at Hyundai Duty Free 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 Korean fashion brand operator has been approached by large Vietnamese buyers such as Vincom and Takashimaya Department Store for a spot on WHO.A.U’s online shopping mall.
Analysts said WHO.A.U has great growth potential in Vietnam following its achievements in China.
They said the brand’s signature bear mascot Steve has a strong character and intellectual property appeal.
WHO.A.U is also priced at one-third the cost of similar US casual brands such as Polo or Tommy Hilfiger, giving it a significant price advantage, they said.
The Korean retailer plans to assess local market reactions to WHO.A.U in Vietnam before potentially introducing other brands such as SPAO, a fast fashion brand under E-Land.
A company official said it is also considering establishing retail operations by operating an NC Department Store there.
By Hyeong-Ju Oh
ohj@hankyung.com
In-Soo Nam edited this article.
