What's Happening?
South Korean retail group Handsome, a subsidiary of Hyundai Department Store Group, is accelerating its expansion in Europe, particularly in France and the UK. The company plans to open a pop-up store for its brand TIME Paris at La Samaritaine in Paris from August 30, aiming to boost visibility among French consumers. This move is part of a broader strategy to enter major French department stores and secure wholesale contracts with global distributors, including Harrods in the UK. Despite these expansion efforts, Handsome reported a decline in turnover for the second quarter of 2025, with revenues dropping by 1.1 percent year-over-year to 338.1 billion won. Operating profit fell by 82 percent to 700 million won, attributed to weak fashion consumption and unusual weather conditions. However, online sales saw a slight increase, driven by new customers and higher average transaction values.
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Why It's Important?
Handsome's expansion into European markets, particularly France and the UK, signifies the growing influence of Korean fashion brands internationally. The company's strategic moves to increase its presence in prestigious retail locations like La Samaritaine and Galeries Lafayette reflect the rising interest in Korean fashion's minimalist and contemporary aesthetic among European consumers. Despite the decline in revenue, the increase in online sales suggests a shift in consumer behavior towards digital shopping platforms. This expansion could potentially enhance Handsome's brand recognition and market share in Europe, providing a foundation for further growth in North American and Asian markets.
What's Next?
Handsome plans to open an official boutique for its menswear brand System Homme at Galeries Lafayette Haussmann in January 2026, following the success of a previous pop-up store. This expansion is expected to further solidify the brand's appeal among French and European audiences. The company aims to leverage its diversified brand portfolio to achieve annual revenue of two trillion won by 2030. As Handsome continues its expansion, it may face challenges related to fluctuating consumer demand and economic conditions, which could impact its financial performance.
Beyond the Headlines
The presence of Korean brands in France has intensified, reflecting a broader cultural exchange and acceptance of Korean aesthetics in European fashion. This trend highlights the potential for Korean brands to influence global fashion trends and consumer preferences. Handsome's strategic focus on high-profile retail locations and partnerships with renowned distributors underscores the importance of brand positioning and visibility in competitive international markets.
