Myeong-dong, a key shopping district in central Seoul, is once again bustling with foreign tourists, reclaiming its reputation as South Korea’s go-to destination for retail.
Capitalizing on this resurgence, popular fashion and beauty brands targeting young consumers are rushing to open flagship stores in the area to boost global visibility and sales.
Highlight Brands, which operates the casual fashion brand KODAK Apparel, announced on Monday that it will open a new flagship store in Myeong-dong on November 22.
The new location is being constructed next to the flagship store of Matinkim, which opened in August. Highlight Brands explained that the Myeong-dong store aligns with its strategy to expand KODAK Apparel’s international presence.
“We noticed a strong interest from foreign tourists at our Seongsu flagship store, which led us to select Myeong-dong, a more tourist-heavy area, for our second location,” said a company official. “We’ve been waiting for the right spot since late last year and signed the lease as soon as it became available.”
On October 11, contemporary fashion brand Nick & Nicole, which first gained popularity online, launched its second flagship store in Myeong-dong.
The grand opening, featuring appearances by celebrities and influencers, attracted large crowds, briefly creating congestion in the area.
Other domestic brands favored by younger consumers have set up flagship stores in Myeong-dong this year.
These include Matinkim, Marithé + François Girbaud, SINOON, Covernat, and Musinsa Standard. Global brands such as Lululemon and H&M have also secured space in the district.
The beauty sector is equally active.
CJ Olive Young, Mixsoon, 3CE, and Mediheal have all launched new stores in Myeong-dong, while accessory brands Wiggle Wiggle and Blue Elephant have also set up shops.
Meanwhile, MLB relocated its flagship store to a larger nearby location, and brands like Hazzys and Daiso have renovated their stores to enhance their flagship presence.
The influx of new stores is driven by the desire to capture the attention of foreign tourists. For many brands, having a flagship store in Myeong-dong serves as a status symbol, signaling their prominence in the Korean market.
The visibility provided by these stores also serves as an effective global marketing tool, especially as foreign customers make up the majority of sales in the area.
On average, flagship stores on the main street of Myeong-dong attract around 1,000 visitors per day, with monthly sales exceeding 1 billion won ($723,000).
More than 95 percent of these sales come from foreign tourists, with most customers hailing from Japan, Southeast Asia, China, and Taiwan.
The increasing concentration of popular brands is creating a positive feedback loop, attracting even more tourists eager to experience Korea’s trendiest fashion and beauty offerings.
Many other brands are reportedly considering opening stores in the area, further fueling the district’s recovery.
Myeong-dong’s vacancy rate has improved significantly as a result of this surge in retail activity.
According to Cushman & Wakefield, the vacancy rate in this commercial district peaked at 49.5 percent in 2022 but has since dropped to 6.8 percent in the first half of 2024, nearing pre-pandemic levels.
By Kim Hyo-hye and Minu Kim
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]
