What: Hyundai is following Lotte and Shinsegae and launches its own structure to support local fashion.

Why it is important: While the follower’s attitude is rather strange, the overall approach in Korea is quite smart as department stores are positioning themselves as incubators for local fashion, a good answer to global brands.

Hyundai Department Store has launched a new service called "The Hyundai Global" to help Korean fashion brands expand into overseas markets. Under the program, Hyundai will select promising Korean brands and negotiate with foreign retail partners, such as Japan's Parco, to open stores and pop-ups featuring the brands.

By handling the entire process, from location selection to inventory management, Hyundai expects the brands can reduce their overseas expansion costs by over 30% compared to going it alone. It's a "win-win", as global retailers can enhance their merchandise by tapping into Hyundai's "validated" Korean brands.

The first market targeted is Japan, where Hyundai will sign a deal with Parco to open a Noice pop-up in May, followed by 11 other Korean brands. This builds on Hyundai's existing partnership with Thai retail group Siam Piwat to operate Korean brand spaces in their malls.

Hyundai aims to expand The Hyundai Global model to prominent shopping malls in China, Vietnam, Hong Kong, and Europe, helping drive the global expansion of Korean fashion labels.

Hyundai Department Store launches platform for K-fashion expansion