Discovering Dongdaemun Night Market, the epicenter of Korean fashion
By Korea.net Honorary Reporter Nicole Bergeaud from France
This is a partial excerpt from the original article
In October 2023, I met Jihee and Haewon Shin in Seoul. The journeys of these two sisters are deeply linked to the Dongdaemun market, the vibrant heart of Korean fashion. With 20 years of experience, they are now respectively co-founder and fashion director of an innovative and committed startup. Interested in my experience in fashion in Paris, they invited me to their office at the Seoul Fashion Hub for an exchange that has continued ever since. Jihee Shin tells you all about the Korean fashion industry.
Nicole Bergeaud: Jihee, introduce us to the Dongdaemun Night Market.
Jihee Shin: It is much more than just a night market. It is the epicenter of Korean fashion, the place where K-Fashion was born. Within a radius of two kilometers, you can find everything from raw materials to finished products with the capacity to manufacture in two days. It’s a bustling maze of over 30,000 specialty shops, open from dusk to dawn. This fashion marketplace shines brightly at night, teeming with life and creativity. That’s why we named our company Owl Society.
What about sustainability in Korean fashion?
Until recently, the focus was mainly on producing new products, with insufficient attempts to resell overstocked goods. Today, sustainability is gaining more and more importance, including recycling, redesigning, upcycling, and conscious fashion, in response to growing consumer concerns about environmental impacts. Throughout our journey in the fashion industry, inventory management has emerged as a major challenge. My partner and I founded Shakalaka, a pioneering platform and app for reselling excess inventory directly from manufacturers to consumers.
Throughout our journey in the fashion industry, inventory management has emerged as a major challenge. We founded Shakalaka, a pioneering platform and app for reselling excess inventory directly from manufacturers to consumers. Reselling is a powerful solution to combat environmental pollution, reducing manufacturing and thus preserving natural resources. This circular business model could reduce greenhouse gas emissions by around 143 million tonnes by 2030. It is also attractive to consumers in these times of prolonged recession, which makes it crucial.
You were interested in a more responsible fashion industry early on?
My journey towards sustainable fashion began in 2008 at the Dongdaemun wholesale market with the introduction of biodegradable bags made from corn starch and the launch of a GOTS (Global Organic Textile Standard) certified organic line that offers consumers all the guarantees of respectful production, from materials to finished products. On our Shakalaka platform, we resell overstocked products from small Korean businesses in bulk to overseas boutiques as well as to influencers looking for K-fashion. Some orders have reached over $100,000 from Thai and Malaysian influencers.
I am impressed by the good quality of Made in Korea clothing, where are they made?
The products labeled Made in Korea at Dongdaemun Wholesale Market are manufactured in factories of various sizes located within 30 minutes in Seoul. They prioritize efficiency, flexibility, and speed to meet demands, whether it is for high-end items or low-priced, low-quality items… there are some too! At Shakalaka, we carefully select well-known brands in the market, from the Top 20 most important brands. These brands maintain a clear brand identity and have excellent quality in terms of design, materials, and style.
In which countries in Asia and beyond is Dongdaemun most famous?
More than 70% of sales come from geographically nearby countries such as China, Taiwan, and Japan. Some well-known brands and online stores in the United States and Europe have also established themselves as trendy brands by sourcing from Dongdaemun brands.
How does the Korean government support the fashion industry?
It has implemented several initiatives to foster growth and improve international competitiveness, summarized here in four main points.
It provides exhibition platforms for fashion designers and brands to showcase their work domestically and internationally. It supports international fashion events such as Seoul Fashion Week, offering emerging designers the opportunity to enter the global market and showcase the latest Korean fashion trends.
It supports education and talent development. Nurturing creative talent is essential for the sustainable growth of the fashion industry. For example, the Seoul Fashion Hub, where our headquarters is located, is provided almost free of charge by the city of Seoul for fashion startups and brands, offering office space, amenities, business-related training programs, and support for acquiring intellectual property rights, to cultivate future leaders.
It provides funding opportunities with several financial support programs for fashion startups and small and medium-sized enterprises. These programs help companies that need funds for start-up, for business expansion, for research and development, etc.
It facilitates international partnerships. Public institutions such as the Textile Industry Federation help Korean fashion companies penetrate overseas markets by subsidizing the costs of participating in trade shows and providing office space around the world as well as networking opportunities with overseas buyers.
The Korean government is thus laying the foundation for the continued growth of the Korean fashion industry and the exploration of new opportunities in the global market, playing a crucial role in gaining international recognition for the uniqueness and competitiveness of Korean fashion.
In your opinion, what are the main differences between Korean fashion and French fashion?
They share elegance, but there are significant differences. Korean fashion is known for its quick adaptability and innovative approach, responding sensitively to market changes, embracing new trends, and constantly presenting a variety of designs at a rapid pace. French fashion, rooted in traditional craftsmanship and skills, displays a timeless classicism.
In addition, the distribution methods are different. Korea actively uses digital platforms and online marketplaces to quickly deliver fashion products to consumers, while France emphasizes distribution through traditional boutiques and luxury stores. These differences reflect the cultural background and market demands of each of the two industries.
The most notable cultural difference I observed is in the distribution, from ordering to manufacturing the products. In Dongdaemun, manufacturers/brands produce new items for the season in advance and sell them to resellers. This allows for rapid market response and agile adaptation to ever-changing fashion trends. However, this approach carries the risk of unsold items, making forecasting and inventory management a crucial issue.
In contrast, the French distribution system mainly involves taking orders from boutiques and concept stores a season in advance and then producing accordingly. This pre-order system allows predicting the quantity of products that will be sold before production, which significantly reduces the inventory burden. This approach to made-to-measure in France is often done through pre-orders with resellers at events such as trade shows.
These two different approaches reflect the characteristics and demands of each market, with distinct advantages and disadvantages in inventory management and market response strategies. Personally, experiencing these differences made me realize the importance of leveraging the advantages of each method.
Is French fashion still a source of inspiration for Korean designers today?
Yes, many Korean fashion brands and individuals (including myself) are inspired by the “French chic” style, an effortless and seemingly unadorned sophisticated elegance. One of the core elements is the principle of “Less is More,” a profound elegance and sophistication in understated simplicity. After the pandemic, a new term has emerged in Korea: “kuankku,” which means “putting a lot of effort in, without it being obvious.” Korean fashion brands have adopted this concept in their collections through clean lines, minimalist designs, and the choice of luxurious materials.
Are there any regulations for copying brands in Korea?
Yes, there are strict regulations against counterfeiting through trademark and copyright laws. Korean law prohibits the unauthorized reproduction or imitation of brand logos, designs, and names. Violations can result in penalties ranging from fines to imprisonment. These measures play a crucial role in protecting the intellectual property of brands and maintaining their value.
You have been working in Dongdaemun for two decades, what changes have you noticed?
I have observed four that have fundamentally changed the structure and operation of the Dongdaemun Night Market, with different trades constantly trying to adapt to a new environment.
The rise of retail stores. Initially, the emergence of large shopping malls such as Migliore and Doota made Dongdaemun successful, but over time, competition between these malls intensified, leading to a deterioration in profitability and even the decline of some of them.
The rise of online shopping malls: Online shopping has revolutionized the fashion consumer culture. The hype of quick profits through online shopping has attracted many novices. This has led to problems arising from price wars and ignorance of tax laws, making price competition even fiercer.
The rise of Chinese wholesalers: The increase in overseas travel has led to an increase in their orders. Major online shopping malls have increased their own production, significantly reducing their orders in Dongdaemun Market, which has increased the wholesale market's dependence on China.
The impact of smartphones and the COVID-19 pandemic: Smartphones have revolutionized the way orders are placed. There is no longer a need to physically visit the market, which greatly improves and facilitates transactions. The offline wholesale market activity has declined significantly with the pandemic, hence the importance of these online platforms and digital transactions.
What are the latest trends?
In today's fashion, the absence of a singular dominant trend is itself becoming the trend, highlighting a shift towards micro-trends that reflect more individualized consumption patterns. As a result, fashion shopping is no longer just about buying clothes. It is about consumers looking for brands that match their personal tastes and preferences.
Increasingly, consumers prefer brands owned by influencers or personalities, willing to spend more on product quality and brand communication rather than simply paying for the margin associated with distribution. The traditional B2B2C distribution model has long lost its competitive advantage in pricing.
Wholesalers, aware of this change, are now going beyond just selling clothes. They are focusing on selling the identity of their wholesale brands. They are relaunching as designer brands on platforms like Musinsa and W Concept, which means a departure from the traditional wholesale market to adopting a brand identity.
In conclusion, for Dongdaemun Night Market, the focus should no longer be solely on selling clothes but on leveraging and selling brand identities. This means that in the future, more emphasis should be placed on marketing Dongdaemun as a brand.
Thank you very much Jihee Shin for your time and thank you also to Haewon Shin for initiating our meeting at Seoul Fashion Hub!
Interview conducted in person in Seoul in October 2023 and via emails.
The night market is open to everyone even though transactions are codified. It is a professional market after all… I was very surprised by its size and its modernity, and by its hours too: from 8pm to 5am the next morning!
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This article was written by an honorary journalist from Korea.net. Present all over the world, our honorary journalists share their passion for Korea through Korea.net.
Source :https://french.korea.net/NewsFocus/HonoraryReporters/view?articleId=249050