SEOUL—Hennes & Maurtiz will open its first store in South Korea over the weekend, ending a four-year search for the perfect location.
The nearly 28,000-square-foot-store is located in Seoul’s bustling Myungdong district, a hot spot for young Koreans and Japanese tourists. The area boasts a plethora of restaurants, cafes and retailers such as America’s Polo Ralph Lauren, Japan’s Uniqlo and Korean brands Beanpole and Spao.
About 1,250 Korean shoppers descended on the store for a pre-opening shopping party Thursday night. H&M chief executive Karl-Johan Persson sipped champagne along with actors Ji Jin-hee, Yun Eun-hye and pop singer Bada.
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Hans Andersson, representative director for H&M Korea, said he thinks the Swedish retailer will succeed in the country despite the fact it’s a very competitive market with very fashionable local brands. The new H&M is almost next door to Spanish competitor Zara.
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“We have nothing against competition. We love competition,’’ Andersson said, declining to give a sales forecast for the Korean flagship. “We have been successful in other capitals where the competitive is fierce, Paris, London, New York.’’
H&M plans to open a second store in Seoul but the company is not in a rush to do so because it is holding out for the right location. Stockholm-based H&M currently has 1,999 stores throughout the world including 34 in Asia.
There is evidence of growing demand for fast fashion in Korea. Zara opened its first Korean store in April 2008 and the chain now has 18 stores. In 2009 the company’s sales were 89 billion won, or about $997 million at current exchange rates, 8 percent over its target, according to a Seoul-based spokesman.
“We don’t think H&M takes customers away from us. Like we experienced in Hong Kong, China and recently Japan, H&M’s openings always enlarge the market pie and boost our stores nearby,” he said, adding that Zara plans to open another 11 stores in Korea this year.
The shopping frenzy at the opening party also indicated plenty of pent-up demand for cut-price fashion. Yun Song-chong, who used to work for Gucci in Korea, took advantage of the one-night only discount to scoop up items for herself and her two daughters.
“H&M is very cheap and trendy,” said Yun as she clutched blue and pink dresses for her daughters and a blue jacket for herself. “The clothes are very colorful and tight fitting.’’
The store’s grand opening on Saturday will also feature the Korean launch of the Sonia Rykiel collection of colorful, striped knitwear, which made its debut elsewhere in the world last week.
Overall, Andersson he was impressed with the quality of the street fashion he’s witnessed so far in Seoul.
“From what I have seen on the streets it is much more trendy than I would have thought,” he concluded.